Friday, October 21, 2011

PM invites Indian business community to invest in Nepal

Prime Minister Dr Baburam Bhattarai today said liberalised tax system and introduction of various social security schemes in the recent months have made Nepal foreign investment conducive and Indian investors should take advantage of it.
Addressing an interaction organised by FICCI, CII and Assocham in New Delhi, today, he also stressed on new social security schemes and improving labour relations in recent times.
Our tax system remains one of the most liberalised in the South Asia,” he said, adding that it makes foreign investment more conducive. He also said Nepal did not discriminate any foreign companies in the country. “We treat all the companies-foreign and national equally. Nepal is also signing Double Taxation Avoidance Agreement (DTAA) and Bilateral Investment Promotion and Protection Agreement (BIPPA) with India to boost investors’ confidence.
”He maintained that Nepali stakeholders were giving finishing touch to political need of Nepal and at the same time also focusing on economic need of the country. Dr Bhattarai said Nepal’s agriculture, tourism, hydropower and mining hold high potential for both Indian and Nepali investors.
The UCPN-Maoist ideologue also informed that a Board of Investment that has been planned by the government under his leadership would address the issues of foreign investment.Nepal’s trade deficit has reached Rs 218 million and it can be bridged only when the county produces enough goods in its territory and sell them into Indian market, the Prime Minister said.Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Suraj Baidhya, who is accompanying the Premier on his four-day official tour to India said Indian investors had invested worth $ 44 billion in other foreign countries and “if Nepal could attract a small percentage, the country could benefit a lot.”
Similarly, Confederation of Nepalese Industries (CNI) president Binod Kumar Chaudhary said Nepal failed to take advantage of Indian investment, and cooperation because of politicisation of economic issues. “Now when the PM is visiting India, back home some of the parties are worried that he might sign any major deals,” he said, adding that India also needs to be more liberal vis-à-vis Nepal and should not add tariff and non-tariff barrier to hurt Nepal’s trade with India and other third countries. Indian investors who spoke on the occasion showed concern about industrial strikes and power outages.

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