Laxmi Capital News
PM Oli urges Indian business community to invest in Nepal

Prime Minister KP Sharma Oli has urged Indianinvestors to inject investment in various potential sectors of Nepal, citingthat the country is now safe for foreign investment along with improved law andorder situation and formation of a stable government.

Addressing a roundtable meeting with Indian businesscommunity today, Oli, who is on a three-day visit to the southern neighbour,said that Nepal’s sole objective after the institutionalisation of politicalgains is economic transformation and the government will do everything possibleto facilitate investors in the country.

“Why not make Nepal the next investment destination byIndian investors, who have been investing across the globe,” Oli questioned theIndian business community, adding that Nepal’s geographical proximity with India,easy access and cultural similarities between the two nations are additionalbenefits for potential Indian investors in Nepal.

Citing that the government will provide equal treatment toboth local and foreign investors, Oli also informed the Indian businesscommunity that Nepal today delivers a favourable fiscal environment with lowtax slabs, no income tax on dividends and export earnings, exemption of tax andtax holidays for certain industries and exemption of duty and fees on the keyinputs used by an export industry.

Similarly, Oli also informed the Indian business communitythat they will not face problems in market access in Nepal
basically due to Nepal’s strategic location of being lodged between the twoeconomic giants — India and China.

“Moreover, Nepal enjoys duty-free market access todifferent nations including the European market and preferential market accessto United States. Nepal’s problem is low production and to boost production, weneed investments at a larger scale,” Oli said.

Informing that Nepal also offers attractive incentives toinvestors compared to other nations, Oli said that sectors, includingmanufacturing, hydropower, information and communication technology, mining andagriculture, in Nepal have high investment opportunities with good rate ofreturns.

The other factor that makes investment competitive inNepal, according to PM Oli, is the availability of a cheaper labour force. “Wehave reformed labour laws and industrial relations have improved,” he added.

On the occasion, Prime Minister Oli also assured the Indianbusiness community that the government in Nepal is committed towards liberaleconomic policy and works in close collaboration with the private sector fordevelopment.

Source : The Himalayan Times, 8th April 2018

 

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