By IANS,
New Delhi : Promising to push the peace process in Nepal, Prime Minister Madhav Kumar Nepal Wednesday unveiled a slew of initiatives, including an industrial security plan, to attract Indian investment to his country.
Making a strong pitch for a revised trade treaty between Nepal and India, Nepal’s prime minister stressed that attracting foreign investment topped priority of his government and assuaged anxieties of Indian investors wishing to invest in his country.
“We are promoting an investment-friendly environment and a liberal trade policy,” Nepal, who began five-day visit to India Tuesday, told a gathering of top Indian and Nepali businessmen here.
“All sectors are open to FDI. The procedures for foreign investment have been simplified,” he said while describing India as Nepal’s “major development and economic partner”.
Responding to Indian businessmen’s concerns about labour unrest, the culture of strikes and the continuing political instability, Nepal said his government has come out with “a comprehensive security plan to address these concerns.”
In a message aimed at the Maoists back home, known for their hostile attitude to business, Nepal warned against “mixing politics with economics” and said his government was evolving a political consensus on the plan.
He also spoke about setting up a high-level investment board to clear foreign investment proposals in the minimum possible time and a grievance redressal unit that will be managed by the prime minister’s office.
“My government is committed to pushing the peace process. The new constitution and the success of the peace process will begin a new era in Nepal,” he said in a bid to instill investors’ confidence in the politically volatile country.
He identified roads, infrastructure, hydropower, education, health and financial services as key areas where Indian investment could make a difference.
Bilateral trade has jumped from $209.5 million in 1995-1996 to over $2 billion, but it still remains much below potential.
Nepal, however, expressed concern over widening trade deficit and underlined the need for more favorable balance of trade that will further expand economic engagement between the two neighbours.
Nepal will discuss economic issues in greater detail when he meets Finance Minister Pranab Mukherjee Thursday.