Nepal-India trade needs facilitation to bridge trade deficit
Nepal-India trade has to be facilitated and simplified as the trade deficit with India has been ballooning, according to th finance minister Shankar Prasad Koirala.
Addressing the three-day Indiainvestrade 2013, here in Kathmandu, he said that Nepal imports 65 per cent from India, and the third country import also reaches Nepal through India, Nepal's trade is largely dependent on India.
India's assistance in infrastructure is key to boost Nepal's export and economic growth, he added.
The new government will take a giant step for economic development, Koirala, who is also trade minister, hoped, adding that the Indian investors could also take benefit from Nepal's decision.
Inviting the Indian investors to invest in energy, agriculture, tourism and infrastructure development, he expected that the commerce secretary level Inter-Governmental Committee (IGC) meeting that is scheduled for December 21-22 is going to take some vital decision on the issue.
On the occasion, energy minister Umakanta Jha stressed on the need of agreement on energy between the two South Asian nations.
Both India and Nepal can have 'win-win situation', if they jointly develop Nepal's hydropower potential, minister for New and Renewable Energy of India Farooq Abdullah said, on the occasion. "Some 40 per cent population of India is facing energy crisis, he said, adding that Nepal can bridge its ballooning trade deficit with India, if it joins hands in developing hydropower in Nepal. "Even the South Asian regions as a whole can take benefit from Nepal's hydropower."
The economic prosperity should be achieved, it will not happen itself, the Indian minister added. "The policy stability is key to development and encourage investors."
"There is serious political commitment among the political leaders of Nepal for promulgating the new constitution within one year," Indian ambassador to Nepal Ranjit Rae said, adding that India is ready to support, "in all possible ways, peace, security and economic prosperity of Nepal."
Some 40 Indian companies from electrical and energy sector are showcasing latest electrical transformers, generators, solar lighting system at the three-day fair.