DPM Shrestha, Indian multinational companies' reps discuss investment challenges, opportunities

KATHMANDU: Deputy Prime Minister and Minister for Foreign Affairs, Narayan Kaji Shrestha, today hosted a breakfast meeting with chief executives of leading Indian multinational companies operating in Nepal and associated with the Nepal-India Chamber of Commerce and Industry (NICCI).

The meeting, coordinated by NICCI, began with welcome remarks from DPM Shrestha. The chief executives and representatives of the companies shared their success stories in Nepal and outlined their plans for future expansion, emphasising their commitment to reinvest locally from their earnings. They also highlighted several challenges they face, including issues in the real sector, difficulties in remitting funds, payments to foreign suppliers, and the impacts of post-Covid economic sluggishness on the construction and manufacturing sectors.

They discussed the mismatch in customs duties on raw materials and finished products, which has increased manufacturing costs in Nepal and created an uneven playing field. Despite repeated requests to address these issues in budget suggestions, they have remained unresolved. Additionally, concerns were raised regarding the retention of earnings by Indian nationals working in these companies, and the high tax rates in Nepal, which are among the highest globally.

The company representatives suggested that the government address these matters to foster an environment conducive to investment in Nepal. In response, Minister Shrestha assured the delegates that he would convey their issues to the Prime Minister, as well as the ministers for Finance, and Industry, Commerce, and Supplies, to ensure that these concerns are heard and addressed. He expressed his concern over national economy's reliance on remittances and import duties, which has led to a consumer-based economy. He emphasised the need to shift towards an import-substitution and export-oriented economy for long-term sustainability. DPM Shrestha thanked all the multinational company representatives for their presence and their insights into the current economic situation in Nepal.

The meeting was attended by Ravi Kumar Rayavaram, Managing Director of Surya Nepal; Amlan Mukherjee, Managing Director of Unilever Nepal; Abhiman Bararia, Managing Director of Asian Paints Nepal; G Gopalakrishnan of Asian Paints; Gorakh Rana, Deputy Chief Executive Officer of Standard Chartered Bank Nepal; Ravi Bhakta Shrestha, Promoter Director of Unilever Nepal; Saibal Ghosh, Management Consultant at Berger Jenson and Nicholson Nepal; Mayur Kumar, Financial Controller of Dabur Nepal; and Keshab Man Singh, Director General of NICCI.

On the occasion, NICCI Director General Singh presented a copy of the 'Investment Guide for Indian Investors, 3rd Edition, 2024' to the Deputy Prime Minister. This guidebook has been prepared by NICCI in collaboration with the Embassy of India in Kathmandu and the Embassy of Nepal in New Delhi.

The guidebook was launched at the Nepal Investment Summit 2024 in April. It includes all the provisions and amendments made by the Government of Nepal up to the date of the Investment Summit through special ordinances to ease investment procedures in Nepal.