The Union Minister of Finance, Shri Arun Jaitley, shared India’s experience in reforming its economy and attracting foreign direct investment (FDI) at the Nepal Investment Summit 2017 held at Kathmandu on 2-3 March, 2017. He stated that Indian and Nepal share deep-rooted historical, cultural and religious ties which have enabled extensive cooperation in trade and economic fields between the two countries.
While addressing the Nepal Investment Summit 2017, the Union Minister of Finance stated that India and Nepal have wide ranging engagement in trade and investment and that Nepal is well poised to attract further FDI from India by creation of a conducive legal and regulatory framework. India is Nepal’s largest partner in trade and investment with more than 2/3rd of Nepal’s trade being with India and India accounting for nearly 40% of total FDI in Nepal. The two countries have open border, grant national treatment to each other’s citizens and millions of Nepali citizens live and work in India. Nepal has several important sectors such as hydropower, transmission lines, road and rail networks, health, education, tourism, irrigation etc in which it can attract Indian investments. India is ready to invest in the projects of Kathmandu-Nijgadh fast track road, second international airport at Nijgadh, Koshi High Dam etc.
During his official visit, the Union Minister of Finance called on the President of Nepal Smt Bidya Devi Bhandari and the Prime Minister Shri Pushpa Kamal Dahal ‘Prachanda’. He also held meetings with Deputy Prime Minister and Finance Minister of Nepal Shri Krishna Bahadur Mahara and Industry Minister Shri Nabindra Raj Joshi. The Union Minister of Finance also paid obeisance at the Pashupati Nath Temple.
In his bilateral meetings, the Union Minister of Finance conveyed India’s abiding commitment to partner with Nepal in meeting its aspirations for socio-economic growth. Recalling the construction of several Integrated Check Posts, rail links, Hulaki roads, schools, health posts, etc with Indian assistance, Shri Arun Jaitley stated that India stands ready to make available more soft loans for new infrastructure projects which would enable Nepal grow at a fast pace.
In order to address the issue of high trade deficit, Shri Arun Jaitley suggested that Nepal may expand its export basket by attracting more Indian investment in export-oriented industries. Further, the early completion of power projects like Upper Karnali and Arun-III, Nepal would be able to export electricity to India. He urged that the issues of forest land and land acquisition which have delayed the projects should be resolved at the earliest.
The Nepali leaders thanked Shri Arun Jaitley for India’s development assistance and highly appreciated India’s assistance for post-earthquake reconstruction of Nepal. Deputy PM of Nepal Shri Mahara in particular thanked the Government of India for facilitating export of nearly 380 MW of electricity throughout this winter which has enabled several regions of Nepal become free of load-shedding. The two countries now have transmission lines for trade of nearly 500 MW of electricity, which would increase to over 750 MW by mid-2017.
The visit of Union Minister of Finance to Nepal highlights the importance India attaches to its relations with Nepal. The meetings were held in a warm and friendly atmosphere, which traditionally characterize the relations between India and Nepal.