Trims list of products with high export potentials to 12
KATHMANDU, Sept 30: The government has launched the revised Nepal Trade Integration Strategy (NTIS), putting 12 sectors in priority.
It has trimmed the list of goods and services having high export potentials to 12 from 19.
According to the revised National Trade Integration Strategy (NTIS), or NTIS-2016, the list now has nine products and three services. The new list has prioritized medicinal and aromatic plants, black cardamom, ginger and tea under agriculture produces, and leather products, footwear products, readymade garment, pashmina and hand-knotted carpet under industry category. Similarly, remittance generating services, IT, BPO and IT
Engineering, and tourism are the service products in the NTIS-2016.
Launching the NTIS-2016 on Thursday, Minister for Commerce Romi Gaucahn Thakali said that the government was trying to reduce the cost of production of agriculture and industrial products.
However, traders and exporters have complained that the government initiative was simply insufficient to give a boost to exports. Chronic energy crisis and labor problem are some of the constraints to export growth, they added.
The Ministry of Commerce revised the NTIS-2010 as per the suggestions of the exporters after export of key products declined continuously despite getting high priority from the government.
NTIS is one of the ambitious programs that the government launched to promote products and services having high export potentials. However, export of most of the 19 NTIS products has been disappointing in recent years. According to the Trade and Export Promotion Centre (TEPC), export of NTIS products increased by a mere 2.08 percent to Rs 27.41 billion in the last fiscal year.
Meanwhile, the ministry is planning to set export targets for each of the products/services listed in the revised NTIS. It will also clarify which authority will look after specific products.
House passes Industrial Enterprises Act
The parliament on Thursday passed the much-awaited Industrial Enterprises Act, incorporating the 'hire and fire' provision.
The government has also increased capital threshold for small, medium and large scale industries in the new act. The Act, which will come into effect after it is authenticated by the President, has increased capital threshold for small industries to Rs 30 million. This means industries having capital of up to Rs 30 million will be classified as small industries. Similarly, capital threshold for medium industries has been raised to Rs 250 million, while industries with capital of more than Rs 250 million will be classified as large scale industries.
The new Industrial Enterprises Act is expected to be industry-friendly as it is expected to attract foreign investments in the industrial sector.