Deputy Prime Minister Narayan Kazi Shrestha Hosts Breakfast Meeting With Indian Multinational Companies In Nepal.

Deputy Prime Minister Narayan Kazi Shrestha Hosts Breakfast Meeting with Indian Multinational Companies in Nepal.

Honourable Deputy Prime Minister and Foreign Minister Mr. Narayan Kazi Shrestha hosted a breakfast meeting with the senior executives of leading Indian Multinational Companies operating in Nepal and associated with Nepal-India Chamber of Commerce & Industry (NICCI) on 13th June 2024 at his official residence at Lalitpur. The meeting was coordinated by the Nepal-India Chamber of Commerce & Industry (NICCI).

The event began with welcome remarks from Honourable Deputy Prime Minister. During the meeting, the Chief Executives and representatives of the companies shared their success stories in Nepal and briefed their plans for future expansion, emphasizing their commitment to reinvest from the earnings locally. 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 construction and manufacturing sectors.

The mismatch in customs duties on raw materials versus finished products, which has increased manufacturing costs in Nepal discussed which had created an uneven playing field. Despite repeated requests to address in budget suggestions, these issues 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 representatives urged the government to address these matters to foster a more conducive investment environment in Nepal.

In response, Deputy Prime Minister and Foreign Minister Mr. Shrestha assured the delegates that he would convey their issues to the Right Honourable Prime Minister, as well as the Honourable Ministers of Finance and Industry, Commerce, and Supplies, to ensure that these concerns are heard and addressed. He expressed his concern over reliance of Nepal’s economy on remittances and import duties, which has led our economy into a consumer-based economy. He emphasized the need to shift towards an import-substitution and export-oriented economy for long-term sustainability. Deputy Prime Minister Shrestha thanked all the multinational representatives for their presence and their insights into the current economic situation in Nepal.

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

During the occasion, the Director General of NICCI presented a copy of the "Investing in Nepal" a handbook for Indian Investors, 3rd Edition, 2024” to the Honourable Deputy Prime Minister. This guide book was prepared by NICCI in collaboration with the Embassy of India in Kathmandu and the Embassy of Nepal in New Delhi, was recently launched at the Investment Summit 2024 in April in Nepal. It includes all the provisions and amendments made by the Government of Nepal up to the date of the Investment Summit 2024 through special ordinances to ease investment procedures in Nepal.