Conducive Business Environment Must for Steady Flow of FDI from India: FICCI.

New Delhi: The current bout of the malicious campaign by a Nepalese media house against the Indian Joint Venture, Dabur India, is bound to force Indian investors into their shell and result in shying away of FDI to Nepal from other countries as well.

Indian joint ventures in Nepal have contributed significantly to increase Nepal’s exports to India. However, Nepal’s attractiveness as a manufacturing base for India is eroding on account of poor law and order situation.

The spiteful crusade against Dabur India JV in Nepal and the uncalled for and malicious media reporting has vitiated the economic environment and eroded the confidence of Indian businesses in Nepal. The Indian joint venture has already invested heavily in that country and was keenly looking to an expansion of its business activities.

Indian companies have made a significant contribution to the Nepalese economy both in terms of employment generation and by way of generation of revenue to the Nepalese exchequer. Specifically, Dabur India JV directly employs over 1000 people and indirectly about 30,000. It has generated revenue of over NRs. 40 crore to the exchequer, aided industrial development and conservation of rare, endangered and threatened species of
herbs in a state-of-the-art greenhouse in Banepa.

Indian companies like Dabur have helped in stimulating industries such as packaging, agro-based Industries, and transportation Industries whose goods and services are consumed by the Nepalese people on a regular basis.

Indian industry has made a total investment of INR 1400 crore. Of this Dabur’s share is INR 143 crore. Indian joint ventures have been a shining example of India-Nepal economic relationship and has been showcased to attract fresh investments and achieve big strides in the country’s move towards becoming an industrialized state.

Some of the prominent Indian joint ventures in Nepal include: ITC, Unilever Nepal, United Telecom, State Bank of India, Punjab National Bank, Manipal Group, SJVN Ltd.,
Tata Power, GMR India, IL&FS, Asian Paints, LIC, CONCOR and Dabur.

According to Mr Kush Kumar Joshi, President, Federation of Nepalese Chambers of Commerce and Industry (FNCCI), “Nepal looks forward to more investment from India and condemns such incidence of misunderstanding between the Indian joint venture and a Nepal media house. These issues should be resolved amicably in a business-like manner”. He acknowledged that Dabur India’s products conform to international standards and adhere to all the stringent guidelines on quality.

Says Dr. Amit Mitra, Secretary General, FICCI, “It is FICCI’s firm belief that with a conducive business environment in Nepal, Indian investments could grow manifold, thereby strengthening India-Nepal bilateral business and economic relations. The need of hour is to encourage Indian investments into Nepal, provide the right framework for investment policies, create conducive labour laws and forge new partnership in areas of health and education”.

India is Nepal’s biggest trading partner accounting for 58 per cent of Nepal merchandise trade and one-third of trade in services.

Source : orissadiary.com