Nepal invites Indian investment in agriculture, herbal sectors

Nepal's new Prime Minister Pushpa Kamal Dahal said the country has simplified tax regime and also ratifying bilateral investment promotion and protection pact with India.

By: PTI | New Delhi | Published:September 17, 2016 12:43 am
New Delhi: Nepal's Prime Minister Pushpa Kamal Dahal addresses a Business Meeting organised jointly by CII, FICCI and ASSOCHAM in New Delhi on Friday. PTI Photo by Kamal Kishore   (PTI9_16_2016_000367B) Nepal’s Prime Minister Pushpa Kamal Dahal addresses a Business Meeting organised jointly by CII, FICCI and ASSOCHAM in New Delhi on Friday. (Source: PTI/Kamal Kishore)

Wooing Indian investments in farm and herbal sectors, new Nepal Prime Minister Pushpa Kamal Dahal Friday said the country has simplified tax regime and also ratifying bilateral investment promotion and protection pact with India.

“After political stability, Economic prosperity is our sole agenda. Nepal has now become safer destination for FDI … Indian investors have done investments in many countries around the world. My message to the business leaders in India, if far corners of the world can be your investment destination why cannot next door Nepal,” Dahal said at an event organised by industry associations here.

Dahal, who is popularly known as Prachanda, said, “We are in the process of ratifying Bilateral Investment Promotion and Protection Agreement(BIPA) with India.”

The Nepal Prime Minister said that his country has taken many steps to promote growth and investment. “We have reduced tariff and simplified tax regime. More can be done to reform, we are continuously working in that direction,” Dahal said. Noting that Nepal can be attractive business avenue, the Nepal Prime Minister said that his country is committed to creating best possible business reform for Indian investors. He said Nepal wants investment from Indian companies in the field of agriculture and herbal and tourism sector. Nepal plans to establish two Special Economic Zones (SEZ) near Indo-Nepal border, he said.

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Noting that there is no income tax on dividend in Nepal, Dahal said, “We have favourable fiscal environment. There is no discrimination between Nepalese and Indian investors,” he said.

Speaking at the same event, Minister for Foreign Affairs of Nepal Prakash Sharan Mahat said, “Nepal wants Patanjali type investment from India.” He said India is the biggest trading partner of Nepal. He also said that Nepal has one the most liberal investment environments.

The Minister said that there is scope for investments in agriculture, food processing and IT sector in Nepal.