BIPPA, DTAA improved investment climate: Govt officials
The signing of the Bilateral Investment Protection and Promotion Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) with India has improved Nepal’s investment climate, top government officials have said.
Addressing a ‘Foreign Policy Conclave’ organised by the Indian Ministry of External Affairs and Federation of Indian Chambers of Commerce and Industry (FICCI) here on Saturday, Industry Minster Anil Jha said by signing the agreements, Nepal has assured Indian investors that their investments would not be hurt.
Minister for Commerce and Supplies Lekhraj Bhatta also echoed Jha. “We have now made an environment for foreign investments in the country,” said Bhatta. “These agreements will help Nepal reduce its trade deficits.”
Terming BIPPA a positive move, Indian officials, however, said Nepal still has a lot to do to create a conducive investment climate. “The recently signed BIPPA provides a framework to make investment here, but the investment climate should be improved to attract more Indian investments,” said Rajeev Kumar, secretary general of FICCI at the conclave. Besides investment climate, Kumar also stressed on the need for improving infrastructure, governance and labour force skills.
With Nepali officials and the business community asking for more preferential measures from the Indian side to reduce Nepal’s trade deficit with the southern neighbour, Kumar stressed for more integration of Nepal’s economy with bordering Indian states such as Bihar and Utter Pradesh.
Terming Nepal’s economy ‘a bit closed’, he said efforts should be made to integrate Nepal’s economy with the South Asian economy, and India should facilitate transit for Nepal. As hydropower deals with India have always been controversial here, Kumar suggested that Nepal can export power to Bangladesh with help of India as transit.
CNI President Binod Chaudhary said India should come with a clear rational and non-controversial economic agenda for Nepal that would foster economic integration of the two countries without any suspicion at the public level.
On the same occasion, Commerce Secretary Purusottam Ojha said exports to India have stagnated since 2007 as preferential arrangement to Nepal in India eroded.
“Nepal’s trade imbalance with India has increased by almost 10 fold in the last 10 years,” said Ojha. With India announcing duty free access to all South Asian least developed countries from 2013, there is little room for Nepal to take advantage, said Ojha, suggesting trade facilitation, better connectivity, more Indian investment here and removal of non-tariff barriers to boost Nepal’s export to India.
“Indian joint ventures here such as Surya Nepal, Uniliver Nepal, Dabur Nepal are the main exporters to India. This fact suggests that the growth of Indian investment here will help boost Nepal’s export to India,” he said.
Posted on: 2011-12-04 09:32
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