Nepal invites Indian investment

Assuring industrialists that the era of conflicts and violence in Nepal is passe and the reforms process would be consolidated, Nepal on Thursday invited Indian businessmen to explore investment opportunities in the country for mutual benefit.

"This is a new era after the establishment of people's sovereignty in Nepal. Peace has now been restored after the end of a decade long conflict that had held back the socio-economic advancement of the country," Nepalese Finance Minister Ram S Mahat said at a CII function in New Delhi.

In addition to the primary objective of bringing peace, one of the major objectives of the Government is to restore economic growth and effectively reduce poverty in the country, he said. Higher rates of economic growth, among other things, depend largely upon increased levels of investment, Mahat said.

"It is in this context that our attention is now focussed on increased investment, public and private, domestic and foreign. The process of economic reforms, that started in 1990, will be consolidated. Environment for foreign direct investment will be made more conducive," he said.

Pointing out that India is facing higher labour and operating costs of production, Mahat said cheap and abundant labour, the pool of educated technical workforce and other less expensive inputs provide incentives for investors to promote Nepal as a base for producing intermediate products for Indian companies.

The Nepalese delegation, who accompanied the finance minister, urged that India withdraw four per cent customs duty imposed on their products even after the trade treaty between the two countries.