"There exists a huge potential for Nepal to expand trade and investment with India, particularly as it is richest country among all South Asian neighbors in terms of natural resources. I am sure Indian investment worth US$ 15 billion will come into Nepal in hydropower sector alone over the next four to five years if favorable business environment is created," said Prasad in the capital.[break]
Prasad who was speaking at a Foreign Policy Conclave organized by Federation of Indian Chambers of Commerce and Industry (FICCI) and the Ministry of External Affairs of India on Saturday also emphasized that Nepal must develop hydropower and lure more foreign investment if it is to bring down the ballooning trade deficit with the southern neighbor.
"India is not only ready to extend cooperation to increase investment in hydropower but also ready to enhance grid connectivity to help Nepal cope with the deepening power shortage that has hampered its industrial activities," stated Prasad.
Stressing for a long-term economic partnership between the two countries, Prasad said upcoming Foreign Minister Level Joint Economic Commission meeting to be held next February after 1991 will work to deepen bilateral economic cooperation.
He also said the inter-governmental committee (IGC) meeting - commerce secretary level talks - to be held in New Delhi this week would be crucial to seek new avenues for bilateral trade ties.
Minister for Commerce and Supplies (MoCS) Lekha Raj Bhatta urged Indian business community to increase investment in potential sectors in Nepal, particularly referring that the two countries has now signed Bilateral Investment Promotion and Protection Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) to safeguard their interests.
Rajiv Kumar, secretary general of FICCI, said business community is ready to cooperate with the government to enhance trade and investment between the two countries. Rajeev Ranjan Chaturvedy, head of Foreign Policy Forum of FICCI, however, complained of weak law and order situation in the country, citing attacks on GMR´s project.
On the day, FICCI and Confederation of Nepalese Industries (CNI) signed an agreement to open liaison office of FICCI in Kathmandu on January 1, 2012 in order to enhance relationship between business community of the two countries. President of CNI Binod Kumar Chaudhary and Kumar of FICCI signed the agreement on behalf of their respective institutions.
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