Experts tell govt to reap benefit from India´s growth

KATHMANDU, Feb 26:

Participants of a pre-budget interaction organized in Kathmandu on Thursday have called on the government to introduce legal frameworks, focus on infrastructure development and encourage private sector to create a favorable climate for doing business and reap benefit from the economic growth of India.

In his presentation at the interaction organized by Nepal India Chamber of Commerce and Industries (NICCI), Budhaditya Mukherjee, vice president of NICCI, pointed out the issues that need to be tackled by the government in the coming budget. He urged the government for proper maintenance of industrial zones, and removal of ceiling for investment in corporate social responsibility (CSR) and provision that allows a company for depreciation of assets bought by the company and rented to distributor for business purpose. He also urged government not to increase excise duty for liquor industry. “The business climate of Nepal is becoming stable and recent developments have encouraged investors to do business here. The government should tackle few issues that will help to boost foreign direct investment here," he added.

Similarly, Secretary of Ministry of Finance Suman Prasad Sharma said that signing of recent agreements with India, including Power Trade Agreement (PTA), BIPPA, and Power Development Agreements for Arun III and Upper Karnali hydropower projects will be give benefits to both the countries. "However, there are some major impediments. Cost of transportation, slow progress in construction of Integrated Check Posts, lack of good quarantine and poor infrastructures at border points, are raising the cost of doing business.

These issues should be resolved," he added. “As India and China are growing at a fast pace, Nepal should reap benefits from such growth. Nepal should fight for its share. Such fight involves initiatives that we have to take like harmonization of customs and removing other bottlenecks of doing business.

Similarly, Indian Ambassador to Nepal Ranjit Rae underscored the need to institute and develop a holistic approach, that includes legal framework, political commitment and infrastructure development, for economic growth. “Nepal has focused on hydropower sector. The government should also develop its absorption capacity. Unless it gears up for increasing absorption capacity, it may be not able to implement big-projects,” he added.

Source: Republica