Nepal promises priority treatment to Indian investors

New Delhi, Aug 19 (PTI) Nepalese Prime Minister Madhav
Kumar Nepal Wednesday reached out to Indian business leaders
seeking to win back their confidence that was shaken by
political events in the neighbouring country since May.

"Let me stress here that general political and overall
environment in Nepal is improving with concomitant progress in
the peace process...

"I believe we can sustain peace and stability in the
country only with rapid and inclusive development. We will do
our best to ensure security and peaceful environment in the
country...," Nepal said here at a luncheon meeting hosted by
industry chambers Assocham, FICCI and CII.

Political events in Nepal since May this year had shaken
the confidence of Indian entrepreneurs after attacks by
militant trade unions on a few firms, including a well-known
fast moving consumer goods firm.

"The Prime Minister's Office will make sure that you feel
at home and obstacles are removed. You will get a high level
of attention from the government. I will personally make sure
that the foreign investment is given due priority," he said.

He cited investment opportunities in hydro power, roads,
bridges, infrastructure, construction, tourism, agro-
processing and financial services.

"My government will be responsive for all your
suggestions," he added.

Expressing concerns over the widening trade deficit,
Nepal said, "While we are for longer volume of trade between
our two countries we would like to make sure that it is made
sustainable".

Nepal's trade deficit with India increased to USD 878.7
million in 2007-08 from USD 622 million in the previous
fiscal. Bilateral trade in 2007-08 was at USD 2.13 billion.

He further said Nepal will have a high-level political
committee to give boost to foreign investment. "We know that
in ensuring your business we will simultaneously promote our
own economic development and progress," he added.

He also said, "It is only natural that as the closest
neighbours we are looking forward to positive spillover
effects from economically resurgent India."

Meanwhile, Commerce and Industry Minister Anand Sharma in
a meeting with his Nepal's counterpart Rajendra Mahato
discussed the proposed revised Treaty of Trade and Agreement
of Co-operation.

"Sharma hoped that the proposed treaty would lead to
furthering the economic engagement by increasing the mutually
agreed points of trade," on official statement said.

It added that bilateral trade between the countries would
touch over USD 3 billion in the coming years.

Nepal depends upon India for most of its essential
supplies of food grains like rice, medicines, cement, steel,
chemicals, transport vehicles and electronic products. PTI NKD
AM
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