India Inc tests Nepal’s insecure waters | World News - Hindustan Times
close_game
close_game

India Inc tests Nepal’s insecure waters

Hindustan Times | By, Kathmandu
Nov 29, 2010 01:59 PM IST

India accounts for 45% of total foreign investment in Nepal. But Indian ventures are facing a tough time in the Himalayan nation due to political instability and unfair treatment.

India accounts for 45% of total foreign investment in Nepal. But Indian ventures are facing a tough time in the Himalayan nation due to political instability and unfair treatment.

HT Image
HT Image

In a bid to address these concerns and increase investment a team of Indian business leaders are in Nepal these days to confabulate with the government and industry bodies.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

“Despite constraints, we need to renew our contacts and look for business opportunities,” said Sushanta Sen, Principal Adviser-Special Projects and South Asia (Confederation of Indian Industry).

The delegation met ministers for commerce, industry and information technology and urged them to address issues that are acting as impediments to more investment from India.

Non-signing of bilateral investment protection agreement and the revised provisions of double taxation—both approved by India—was one of the main issues that featured during deliberations.

Reduction of discount on custom duty given to Indian goods, government tenders carrying specifications that preclude Indian firms and problems faced by established Indian companies were also taken up.

“Nepal government needs to intervene and stop the smear campaign against Indian products and services,” said Sen.

He cited non-fulfillment of commitments made to the Manipal Group that has a medical college in Pokhara and adverse media reports against products made by Dabur Nepal as examples.

“Problems persist as Nepal is in a transitory phase due to political changes. No one is sure how long it will continue and that is an issue,” said Birendra Sasmal, CEO, Accel Frontline.

The delegation also held discussions with industry bodies and expressed concern at Indian hydro-power projects in Nepal getting targeted.

“Nepal’s trade deficit with India is growing and one way to bridge the gap is through investments. This visit was a step in that direction,” said Harsh Jain, First Secretary (Commerce) at the Indian Embassy in Kathmandu.

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!

Get Latest World News, Israel-Iran News Live along with Latest News from India at Hindustan Times.
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Utpal is a Senior Assistant Editor based in Guwahati. He covers seven states of North-East India and heads the editorial team for the region. He was previously based in Kathmandu, Dehradun and Delhi with Hindustan Times.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Saturday, April 20, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On