New Delhi, Apr 6 (PTI) Nepalese Prime Minister K P Sharma Oli today sought investments from Indian businesses saying his country offers investor friendly environment and incentives for industries.
He said areas such as infrastructure, tourism, power, agriculture and IT hold huge opportunities for investors.
Nepal has a strong government at the centre, and stable government gives stability and continuity in policy regime, he said here at the India-Nepal Business Forum meet organised by industry chambers, including CII.
Law and order situation has improved and this means Nepal is safe for foreign investment, he said, adding that the country need massive investments in every sector.
“Indian investors have invested across the globe, so why not to go to the next door Nepal. Geographical proximity, easy access and cultural similarities are all there to make you feel good about Nepal. Seize the opportunity,” Oli said.
The prime minister said investment in any sector is highly profitable in Nepal and it also provides huge market for investors.
“Investors always looks for market. Look at Nepal’s position. For us, market is not a problem, (but) production is a problem. It is lying between two vibrant economic powers with huge population of the world — India and China. That assure you of a promising market of 2.5 billion people,” he said.
He informed that Nepal enjoys duty free access to European markets.
“We are ready to listen to you. Your advises and suggestions. We want to know your views. We are committed to further improve our business climate,” he said.
Talking about policies, he said the country has enacted laws and reforms for foreign investments and they are committed to provide a liberal economy and polices.
“Nepal has to offer attractive incentives compared to other countries. We have reduced tariffs, simplified tax regimes,” he said, adding that the country is planning to establish SEZ in the cities bordering India with incentives for industries, including liberal labour laws.
He said the Nepalese government have streamlined administrative procedures and “we are committed to provide corruption free administration”.
“We have favourable fiscal environment. We have low tax slabs, no income tax on dividends and export earnings and tax holidays for certain industries,” he added.
He also stated that foreign companies register in Nepal can purchase, own and sell land and there is no discrimination between nationl and foreign investors.
“We are discussing the new version of bilateral investment agreement” with India, he said.
Talking about sectors that holds opportunities, he said power, manufacturing, IT, agro based industries and tourism are the areas where investments can be profitable.
“All sectors open for investment. We are eager to work together with business community of India. I would request you to come to Nepal and invest,” he added.
The bilateral trade between the two countries increased to USD 5.9 billion in 2016-17 from USD 4.4 billion in the previous fiscal.
This is published unedited from the PTI feed.