The CII has been a partner of the FNCCI since 1994. How has the journey been?
The journey has been exceedingly good. We must understand India and Nepal are natural business and trading partners. We share common boundary, we have somewhat similar language, we have similar culture. So there are many things that are common between peoples of Nepal and India. Keeping these things in mind, the FNCCI and the CII started developing relations in mid-1990s and it is getting stronger every year. If you recall, in the middle of last year we formed a joint economic council which is co-chaired by one representative each from the FNCCI and the CII. This council has so far held two rounds of meetings, which discussed an array of issues ranging from trade to investment.
You are currently leading CCI´s CEO mission to Nepal. What were the outcomes?
If you see the history of Nepal, it has experimented with democratic system to monarchy and so on. But good things will happen only if you have a well functioning democracy. We have seen this happen throughout the world, including India. Although democratic systems are prone to delays, the system tries to incorporate voice of everyone, which yields better solutions. I´m told sometime in May everything will be decided, and Nepal will have a proper constitution and fully functioning democratic system in place. This visit has boosted my confidence in Nepal. And I am quite sure things will turn better here.
Are you trying to say political stability is the precondition to bring in more Indian investment to Nepal?
It´s not the question of Nepal. Political roadblocks anywhere in the world creates economic problems. If all the political parties agree to put economy in the top priority then economic growth will certainly take place.
Did any member of your delegation make specific commitment on bringing in investment to Nepal?
During this trip we met the president, prime minister and industry minister. And all of them are in favor of further strengthening business relationship and attracting more Indian investment into Nepal. They also said they will find a resolution to the current political stalemate. And if that happens it will be very good for the future of Nepal.
Coming back to the question again, were any commitments made on investment?
Indian investors are already here in Nepal and are providing jobs to some 30,000 people. More Indian investors are willing to invest in Nepal but they want to see improvement in political environment. So commitments will come only when there is relative political stability in place. Besides the government should also ensure there is stability of policies, industrial peace and drop in industrial strikes. I hope these things will happen once there is full-fledged democratic system in place.
When you talk to your friends in CII and Indian investors in Nepal what were identified as biggest challenges in terms of working in Nepal?
Apart from what I mentioned earlier they want better infrastructure to be built, uninterrupted power supply and flexibility in the labor market. If these problems are solved Nepal is an excellent place to make investment.
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