President of NICCI, Honorable Minister for Industry, commerce and supplies, Former Ambassador of India to Nepal, Respected DCM, Government officials from Nepal and India, President of FNCCI and NCC, and Executive Committee Members of NICCI, Distinguished speakers, diplomats, fellow business leaders, Friends from the media, Ladies and Gentlemen,

It is a great honor and pleasure to be part of the 31st AGM of the Nepal-India Chamber of Commerce and Industry. I extend my warm congratulations to NICCI on completing more than three decades of an exemplary institutional journey - a journey that has significantly contributed to shape and strengthen economic ties between Nepal and India.

31 years of continuity, relevance, and trust is not an ordinary achievement. It reflects NICCI’s ability to evolve with time, respond to changing economic realities, and remain a credible bridge between the private sectors and policymakers of our two countries. On behalf of the Confederation of Nepalese Industries (CNI), I sincerely congratulate NICCI for its remarkable history, enduring legacy, and the milestones achieved under successive leaderships, including the current team.

Ladies and Gentlemen, Nepal-India relations are unique. They are rooted not only in geography and history, but in deep economic interdependence and people-to-people connectivity. In this context, NICCI has played a pivotal role as a bi-national chamber, facilitating trade, encouraging investment, resolving practical business concerns, and creating platforms for dialogue when it mattered most.

Over the years, NICCI has gone beyond being a networking forum. It has emerged as a problem-solving institution, a trusted partner for investors, and a strong voice for pragmatic policy advocacy. Whether it is trade facilitation, transit issues, investment confidence, or sector-specific cooperation, NICCI’s contribution to strengthening Nepal-India economic engagement is widely acknowledged and deeply appreciated.

At CNI, we see NICCI as a natural and strategic partner. While CNI represents Nepal’s leading industrial and private sector voice domestically, NICCI connects that voice to Indian investors, institutions, and enterprises. This institutional complementarity has immense potential, and I firmly believe our collaboration can be further strengthened in the years ahead.

Friends, Allow me now to briefly reflect on Nepal’s evolving investment climate and why Nepal today presents strong opportunities for Indian and global investors.
Nepal has undertaken significant policy and regulatory reforms in recent years to create a more predictable, investor-friendly, and competitive business environment. Nepal offers a liberal FDI regime, allowing up to 100% foreign ownership in most sectors, with constitutional guarantees for property rights, non-nationalization, and equal treatment of foreign investors. The Foreign Investment and Technology Transfer Act (FITTA) ensures profit and capital repatriation, while Bilateral Investment Promotion and Protection Agreements (BIPPA) and Double Taxation Avoidance Agreements (DTAA) further reduce investor risk.

Recent reforms have focused on reducing bureaucratic hurdles and improving ease of doing business. Company registration, expansion, and liquidation processes have been streamlined; regulatory decision-making timelines have been shortened; and unnecessary approval requirements such as mandatory EIA or IEE for certain expansions have been removed. Nepal has also introduced progressive reforms for startups, including sweat equity provisions and capital raising based on intangible assets.

From an opportunity perspective, Nepal offers strategic advantages that are often underestimated. Situated between two of the world’s largest economies, India and China, Nepal provides access to a combined market of over 2.8 billion people. Nepali products enjoy duty-free or preferential access to India, China, the European Union, and the United States. With a young and cost-competitive workforce, and average returns on equity of FDI enterprises ranging between 12 to 14.5%, Nepal presents attractive returns on investments.

From a sectoral perspective, Nepal offers a broad and compelling spectrum of investment opportunities. The country’s hydropower and renewable energy sector stands out, with over 42,000 MW of commercially feasible hydropower potential alone, well aligned with the growing regional energy demand from India and Bangladesh. Tourism and hospitality continue to present strong prospects, particularly in premium, eco, and adventure tourism segments. At the same time, Nepal’s rapidly expanding IT and digital economy with immense potentials of billion dollars’ IT Enabled Services export, it is emerging as a competitive regional service hub, supported by recent reforms that allow Nepali IT companies to establish overseas branches and repatriate global earnings.

Beyond these, sectors such as infrastructure development, agro-processing, manufacturing, education, medical tourism, and even mines and minerals are opening up new and wider avenues for private investment. Together, these sectors represent the key growth engines that can help transform Nepal’s economy from its current size of $44 billion to $100 billion within the next decade.

In this regard, I would also like to share with this august gathering that CNI is currently undertaking a comprehensive study to develop a clear roadmap towards achieving a USD 100 billion economy. We expect to present the final report in the coming months and look forward to engaging with all stakeholders, including partners from India, in translating this vision into reality.

Ladies and Gentlemen, In addition to attracting inward investment, Nepal is also progressing towards a more forward-looking and liberal economic framework. The Government of Nepal has announced a progressive policy to allow Nepali companies to undertake outward investments, including establishing production facilities abroad. While this policy has been articulated in the current fiscal year’s budget, we now look forward to its timely incorporation into relevant acts and regulations. Encouragingly, Nepal’s IT companies have already begun taking early steps in this direction.
This shift reflects Nepal’s aspiration to integrate more deeply into regional and global value chains, and it opens new possibilities for cross-border partnerships, particularly with Indian firms, where joint ventures, technology transfer, and market access can be mutually beneficial.

This is also a moment to look ahead. The next phase of Nepal-India economic relations must be private-sector driven, innovation-led, and regionally integrated. Institutions like NICCI, working closely with organizations such as CNI, will be instrumental in translating dialogue into tangible outcomes - be it investment projects, industrial partnerships, or technology collaboration.

Once again, I congratulate NICCI for its outstanding journey, institutional resilience, and leadership over the past three decades. I reaffirm CNI’s strong commitment to working closely with NICCI to deepen Nepal-India trade and investment ties and contribute meaningfully to shared prosperity.
I wish NICCI continued success in the years ahead. Thank you.