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“Despite the pandemic, it was remarkable to see Nepal’s exports to India grow by 50 percent in the last financial year 2020/21, and India’s exports to Nepal were worth INR 6 trillion, up 32 percent from the previous year,” Sunil said. KC.
Sunil KC Vice President Nepal-India Chamber of Commerce and Industry (NICCI) and International Investment Promotion Adviser, Federation of Nepal Chambers of Commerce and Industry (FNCCI)
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The Roti-Beti partnership between India and Nepal is being taken to the next level as the Himalayan state presents great opportunities for Indian investors in sectors ranging from industry to tourism, Sunil KC Vice President, Nepal-India Chamber of Commerce and Industry. NICCI) and International Investment Promotion Adviser, Federation of Nepal Chambers of Commerce and Industry (FNCCI) informed ET’ Dipanjan Roy Chaudhury on the eve of Prime Minister Sher Bahadur Deuba’s crossing of the Indian border from Friday.
Nepal and India, which differ significantly in terms of land area, population, economic and technological development, have a multilateral relationship. The two countries are natural partners and there is a huge potential to increase relations. We can envisage cooperation in the field of trade, investment, industry, tourism infrastructure.
NICCI’s main objective is to promote joint venture investment and economic relations between Nepal and India through the existing strong bilateral relations and cooperation between the two countries. NICCI is a forum to address the challenges of member organizations and also presents them to relevant authorities to work on industry related issues. NICCI is the only body established in Nepal working to promote Indian investment.
The organization worked closely with the ministries of the Nepalese government and the diplomatic missions of both countries. Our motto is to develop Nepal as a strong destination for foreign investment, especially from India, which will help facilitate bilateral trade and transit issues and promote bilateral tourism. NICCI also helps Indian investors find trade and manufacturing partners in Nepal.
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Can you work on an economic partnership between the two countries? Until 1996, Nepal’s trade with India accounted for 1/3 of Nepal’s total international trade. Exports to India were less than INR 5 billion and India’s exports to Nepal were less than INR 15 billion. Thus, Nepal’s export import ratio was 3:1. The main focus of the trade agreement, which took place in 1996 under the Gujral Doctrine, was Nepal as an industrial base with duty-free access to Nepali products in the Indian market, where most of FNCCI’s operations were located. ; 100 and 100 Alliance is widely recognized as a ‘benchmark’ of Nepali-Indian business fraternity and has created a strong life between Nepali and Indian business communities as well as abroad to invest in Nepal. The alliance’s first tenure worked for 7 years as a ‘golden year’ for FDI in line with the objective of the industrial alliance in Nepal.
Fueled by the spirit of trade negotiations, the composition of Nepal’s international trade has flipped to two-thirds of trade with India, continuing to account for the past 15+ years of Nepal’s trade with 150+ countries. Here I want to mention that very often India is considered as one of the “largest trading partners” of Nepal, but I see that India is also considered as one of the “largest export partners” of Nepal. This is clear because the exceptional people of our two countries relations, as mentioned above, 1,800 km of movement, business and economic trade will be perforated by franchise borders between the two countries with 22 land customs points supported by trade and transit. contracts and service agreement. as well as many other treaties and conventions.
Nepal has recently crossed the “trillion” mark in the history of Nepal’s exports to India. Due to the same bilateral supplies, Nepal has also been one of India’s prize markets. Despite the pandemic, it was significant to witness Nepal’s exports to India grow by 50% in the last fiscal year 2020/21, with India’s exports to Nepal valued at INR 6 trillion compared to 32% in the previous year. The attempt is now to achieve significant continuity of export growth rather than adding better products.
You said that there was a “golden phase” in the history of FDI in Nepal after the 1996 Trade Agreement. Can you name any Indian companies in which investments were made at that time?
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There were a number of companies from India as well as abroad who did interesting work in Nepal in the 1990s. Among them, despite 10 years of insurgencies in Nepal, they remained major contributors to Nepal’s national treasury and also remained a “blue couple” in capital market terminology. To name a few: Dabur Nepal, Unilever Nepal Ltd, Surya Nepal (sister concern of ITC India), Asian Paints Nepal, Berger Jenson and Nicolson Nepal, Kansai Paints Nepal, Aarti Strips, Ashok Steel Industries, Gorkha Lahari, Pro-biotech Industries: , Gorkha Brewery, Highland Distillery, Nepal Distillery, Sungold Brewery Nepal, United Breweries, United Breweries Nepal, United Spirits Nepal, Varun Beverages Nepal, Hotel Everest International, Hotel Hyatt Regency, Nepal SBI Bank Ltd, Everest Bank Ltd, (sister company Punjab national bank), Standard Chartered Bank Nepal Ltd, Reliance Spinning Mills, Insurance Company (LIC) Nepal, Asia Pacific Communication Partners Nepal, Thompson Nepal etc. Eastern Insurance Companies Nepal Ltd and National Insurance Company Ltd in Nepal. Recently, Dabur Nepal received permission to expand further investments of NRs 9 billion from the Nepal Investment Board.
This is exactly my concern. Until five six years ago, India remained number one in terms of FDI commitments in Nepal, but till now India is still number one in terms of cumulative FDI in Nepal. In terms of FDI implementation commitments, we believe that the commitments from India are strong as Indian investors do not need any passport or visa to invest in Nepal. But it does not mean that Nepal got the best investment from India. We get no more than 0.005% of the total global Indian investment flow. Data from our Department of Industry, FDI Division says that Nepal received less than NRs 1 trillion from India in the 2020/21 financial year alone, but the same source shows services from Chinese investment in recent years and around NRs 1.5 trillion so far. NR: .
The Government of Nepal and the private sector would like to welcome new companies established in Nepal after the 1990s. For this, we at NICCI had planned a ‘Nepal-India Partnership Summit’ physically in Nepal in association with the Nepal Investment Board, Ministry and Department of Industries supported by diplomatic missions of both countries, for which we had preliminary works. discussion with company institutions.
Nepal is a country with great diversity of investment potential. According to one of the technical reports, it is estimated to have a potential of about 0.2 million megawatts of hydropower generation, but apart from GMR, no Indian private sector has stepped up to tap this massive potential as India needs it. more energy for further industrial and domestic needs. The Government of Nepal has awarded SJVN Cascades a lower Arun hydropower project with a capacity of 679 megawatts as the Arun 3 project. Bangladesh is also close to building the 1,110 MW Sunkoshi II and 550 MW Sunkoshi III to build plans to purchase 9,000 MW of power from Nepal by 2040 for its needs. There are thousands of such projects in Nepal and Nepal cannot exhaust all these resources. In addition, the Government of Nepal has issued new guidelines for exporting to Nepal with transmission and network projects, where developers can come up with a direct export proposal to India or a third country for construction. Thus, Nepal’s hydropower potential is abundant.
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We have many herbs and formulas, but we need mass production technology to cost-effectively manufacture and market quality Ayurvedic medicine locally, regionally and globally.
In addition, due to the same biodiversity, Nepal is also considered as the best destination to invest in tourism.
When we talk about FDI and technology transfer as well as construction and infrastructure potential like roads, tunnels, bridges, construction of new airports and upgrading of existing airports, construction and operation of ICDs and ICPs in all seven : regions Export processing zones. Construction and operation of railways like East-West Railway and Birgunj-Kathmandu Railway, collaborations in healthcare for quality hospitals in seven states, collaboration in information technology management for quality education, and collaboration in governance. IT companies because the price of work. In Nepal, cheap is better for brilliant minds. The clothing industry and other manufacturing industries they are dedicated to
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