Indian investors have shown interest in investing in Nepal as the country is slowly returning to political stability.
“Nepal has a huge potential for foreign direct investment but stability is a prerequisite,” they said, adding that without a stable government and policy, Nepal will not be able to materialise its dream of attracting foreign investment.
Confederation of Indian Industry (CII) had sent a mission to Nepal on April 5-7 to explore investment sectors and opportunities available in the market.
“We are optimistic about the Nepali market. It has a huge potential to attract foreign direct investment,” said president of CII B Mathuraman. “But, the country needs to wait for better times.”
According to him, Indian investment will flood Nepal once the country gets a new constitution. “The transition has created a lot of problems in the industrial sector. Once the country gets a new constitution, it will lead towards economic development by attracting millions of dollars of foreign investment,” he said.
He said that the mission will explain about the investment opportunities to Indian investors and urge them to explore their areas of interest. “We will put forward our positive thoughts to Indian investors, so that they can plan their investments,” he said. The mission will motivate Indian investors to visit Nepal and explore investment areas, he added.
Nepali entrepreneur Padma Jyoti echoed Mathuraman and said, “The next step for the country after the promulgation of the new constitution will be economic revolution.” CII chief executive officer’s mission to Nepal is a big stepping stone for the future of foreign investment in the country, he added.
According to him, regular interactions with investors from India and abroad are helping create a background for investment. “At present, we are planting a sapling which will definitely bear fruits in the next couple of years,” he said, “The country will attract investments worth billions of dollars once there is stability in the country.”
At the press meet, investors defined ‘stability’ as promulgation of the new constitution, stable policy and reduced labour dispute. “The current labour disputes are also a product of transition, so it will decrease in the coming years," they said, adding that a stable government can offer attractive benefits to foreign investors.
The mission identified hydropower, agriculture (including herbs) and tourism as potential sectors for Indian investment.