FNCCI President Dhakal asks Indian business community to explore Nepal's unique opportunities

June 2: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal has asked the Indian business community to explore Nepal's unique and untapped opportunities.

Addressing the Nepal-India Business Summit organized jointly by FNCCI and Confederation of Indian Industries (CII) coinciding with the 4-day official visit of Prime Minister Pushpa Kamal Dahal Prachanda in New Delhi, on Thursday, President Dhakal asked the Indian investors to invest in Nepal's virgin resources and emerging sectors.

"We have a lot of opportunities. Young population, with an average age of 24, and natural resources are like a vast ocean of untapped potential," Dhakal said, "Nepal is eager to welcome your ideas, your investments, and your partnership. Rest assured, FNCCI is devoted to supporting you for mutual prosperity of India and Nepal."

Stating that the new budget for the next fiscal was designed to promote foreign direct investment (FDI) and clear many issues related to the environment, he asked the investors to bring their investments ranging from tourism, hydropower, manufacturing, ICT and service sector, among others.

"New government is creating conducive environment for business. Next year’s budget has been designed to stimulate demand in the economy. Its main focus is on FDI. Environment clearance for any project is simple and easy. The government is gearing up to vitalize the economy by enhancing conducive environment for doing business."

Talking about the domestic market scenario and the strength of the Nepali economy, Dhakal said that Nepal had made remarkable improvements in poverty reduction over the past 25 years, which indicated the rise of the middle-class population signaling an emerging market full of opportunities for investment and trade.

He further said that as Nepal was enjoying duty-free access to its products in India and many developed countries, Indian investors could take ample benefits from the duty differences.

"Nepal has nonreciprocal and exclusive treaty with India with duty-free access to Nepalese products in India. Besides, Nepali products also enjoy duty-free access to EU, US, Canada, Australia, China and other developed countries. You can leverage this potential to invest and produce in Nepal, and export to the world," he said.

India is biggest trading partner of Nepal, in both import and export, and interestingly, Nepal is the 11th biggest export destination for India.

More than 70 percent of Nepali export is to India. This shows that there is a potential to produce in Nepal, sell there, and export to India and other developed countries with the advantages of duty differences.

Indian investment has been a significant pillar of our FDI. It contributes to more than 30 percent of the total FDI. Nepal is a tested destination for Indian investment.

Many Indian companies, especially in the manufacturing and service sector business in Nepal, are enjoying excellent returns on their investments and they have been successfully doing business in Nepal for more than two decades.

Similarly, Nepal exported electricity worth Rs 11 billion to India last year.

"But, more than 90 percent of our hydropower potential is still unexplored. We open our arms to our esteemed Indian investors. We invite investments and collaborations in the energy sector across Nepal," he said.

He hoped that the joint efforts of the Government of India, the Government of Nepal, and governments in the region would make it easy to buy and sell electricity from Nepal, which could become the battery of South Asia.

Talking about the hospitality industry of Nepal, he said that Nepal was a popular destination for Indian tourists and also asked the investors to bring in their investment in the hospitality sector.

"Majestic hill stations in Nepal, which can be reached within an hour drive from any Indian border points, are quite popular for Indian tourists. Nepal government has given a big focus in the development tourism infrastructure."

Stating that the construction of two international airports in Lumbini and Pokhara would play a crucial role in connecting Nepal and India, he asked for the support of the Government and private sector of India to operate two new airports at full potential.

"Connecting major cities in India and Nepal will bring great benefits to both countries. It will boost tourism and strengthen people-to-people relations."