More FDI Needed From India: DPM .

KATHMANDU: Deputy prime minister and finance minister Bharat Mohan Adhikari said that Nepal needs to attract foreign direct investment (FDI) in the hydropower, infrastructure and mining sectors.

“Nepal needs to attract more FDI from other countries including India,” he said while inaugurating the 16th annual general meeting (AGM) of Nepal-India Chamber of Commerce and Industry (NICCI) here in the valley today.

“The current security related issues are temporary because of the transition period the country is passing through,” he said, adding that Nepal should think of increasing its exports and take advantage of economic powers like China and India. “India’s help is crucial in solving power crisis and boost to economic development,” he added.

“India has contributed a lot to the development of Nepal,” said Indian ambassador to Nepal Rakesh Sood. “Around 45 per cent of FDI in Nepal is from India, he said, adding that the Indian investments in Nepal have generated some 30,000 jobs directly and the double the number indirectly.

However, he complained of a discouraging investment environment for Indian investors in the country. “Current issues have discouraged new investments from India,” he said, also urging Nepal to check on diversion of third-country goods to India and violation of Intellectual Property Rights of popular Indian brands. Sood said NICCI can play a key role in boosting Indian investors’ confidence and further strengthening bilateral economic and trade ties.

On one hand trade ties with India are growing and on the other hand trade-deficit is also increasing, doubling to Rs 317 billion between 2008 and 2010.

“Nepal has to think on how to bridge the trade-deficit,” Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi said, adding that Nepal could not take advantage of the Nepal-India Trade Treaty due to its own internal reasons that could have helped reduce the trade deficit.

Joshi also urged to open more customs points and expedite refund of excise duty as stated in the treaty.

Similarly, Nepal Chambers of Commerce (NCC) president Surendra Bir Malakar also requested to simplify the cross-border trade. “Revised trade treaty between the two South Asian neighbours has addressed many issues,” he said, adding that both countries should encourage formal trade.

Welcoming the guests, NICCI president Arun Kumar Chaudhary said that Nepal could not harness the hydropower potentials despite regular power outage and that could derail the development in the long run. “More than trade-deficit, Nepal is suffering from Balance of Payment (BoP) deficit,” he said, adding there will be more issues once the trade increases. “And, NICCI is playing the role of a facilitator,” he added. NICCI was set up in 1994 to promote or make arrangements for promoting contacts and co-operation among industrialists, businessmen and other professional groups of Nepal and India.

Source : thehimalayantimes.com