PM tries to woo Indian investors in New Delhi
NEW DELHI: Visiting Prime Minister Dr. Baburam Bhattarai on Friday said liberalised tax system of Nepal and introduction of various social security schemes in the recent months have made environment for the foreign investment conducive, and that the Indian investors should take benefit from the improved situation there.
“We are introducing various social security schemes and are also in the process of establishing better industrial labour relations,” he said, addressing an interaction organised by the Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII) and Assocham here in New Delhi.
“Our tax system remains one of the most liberalised systems in the South Asia region. All this has made environment for foreign investment more conducive.”
Dr. Bhattarai, who is currently on a four-day state visit to India, added that there should be certain social security scheme for the laid off labourers, claiming Nepal did not discriminate any foreign companies in the country.
“We treat all the companies-foreign and national equally. We are signing Double Taxation Avoidance Agreement and Bilateral Investment Promotion and Protection Agreement with India to instill investors’ sense of security,” he stated.
The Maoist vice chairman, who was elected the prime minister in August, maintained that the Nepali stakeholders were giving finishing touch to the political need of Nepal and at the same time also focusing on the economic need of the country. “Nepal’s agriculture, tourism, hydropower and mining were areas that hold high potential for both Indian investors and Nepal.”
He informed that a board of investment would be constituted under his own leadership and once that happened that would address the issues of foreign investment.
According to him, Nepal’s trade deficit that has reached Rs 218 million can be bridged only when the country produces enough goods in its territory and sell them into Indian market.
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Suraj Vaidya, who is accompanying the prime minister, mentioned that the Indian investors had invested capital worth USD 44 billion in other foreign countries and if Nepal could attract a certain percentage of that investment, the country could benefit a lot.
Confederation of Nepalese Industries (CNI) President Binod Chaudhary said Nepal failed to take benefit from the Indian investment and cooperation because of political classes’ tendency to unnecessarily ratchet up issues. “Now when the prime minister was to visit India, concerns were raised in Nepal. Some shouted that the prime minister should not sign any major deals. How long can we do like this?” he said.
According to him, India also needed to be more liberal vis-à-vis Nepal and should not allow tariff and non-tariff barrier to hamper Nepal’s trade with India and other third countries.
Indian investors who spoke on the occasion said industrial strikes, power outages were the main headache for the Indian investors.
Source: THT
