Nepal and India recently signed BIPPA and DTAA. How hopeful are you about the positive impact of these agreements?
The business community of India are still in the process of getting the message that the two crucial pacts have been signed. Hence, we are yet to receive response from different strata of business community on the pacts. Nonetheless, what I can say for sure is that the impact of these pacts will not be realized immediately. They will take time. India´s private sector will closely assess the situation in Nepal. But FICCI believes it will bring about a positive impact on enhancing bilateral trade and investments. For me, entering into such agreements is not the end of all problems seen in bilateral trade and investment. The country should first have a good business climate. BIPPA and DTAA will bring good results only after that.
What are the major hindrances to investment in Nepal?
The agreements reflect the good intention of both the governments to create a favorable industrial environment in respective nations. Though the agreements per se are good and significant for bilateral economic relation, some quarters of Indian business communities are showing concern about the shortage of power, labor unrest and industrial insecurities as the key problems in Nepal. We have also some problems in terms of investment climate in India. We, the private sector of the two countries have to take the lead and lobby for a business-friendly climate.
So, FICCI is opening its liaison office in Kathmandu, the first ever such office in South Asian neighborhood, so as to disseminate the message about those treaties among business communities of the two countries. We are working with Confederation of Nepalese Industries (CNI) in this regard. It will publish monthly magazines in Nepali, Hindi and English languages and cover issues of trade and investment between the two countries.
What are the sectors that can attract Indian investments in Nepal?
There are a host of sectors we have seen potentials for investment if a favorable environment in Nepal is restored with the implementation of BIPPA and DTAA, and with the solution of existing industrial problems. To be specific, hydropower, agriculture, food processing, cement, tourism and infrastructure are the sectors we Indian investors are keen to invest in Nepal.
Did you hold any talks with the Nepali authorities on business climate?
We have held meetings with Minister for Commerce and Supplies Lekha Raj Bhatta, Minister for Industry Anil Jha and senior government officials and discussed different aspects of Nepal-India trade and investment. We found them very positive about creating a favorable business climate in Nepal and boosting bilateral trade between the two countries.
Related story
SHIFT for Our Planet: Youths urge authorities to make climate j...
