Nepal wants Indian companies to set up shop, help rebuild country

NEW DELHI: Nepal today called upon Indian businesses to set up units in the Himalayan nation and produce goods to be sold in China, which offers a huge market.

"There is a huge scope to invest in the services sector which accounts for over 50 per cent of Nepal's gross domestic product ( GDP) and generates maximum number of jobs.

Indian companies can explore significant business opportunities in aviation, banking, communication, education, health, tourism, transportation and other such areas which are new wealth generators," Nepal's Finance Minister Dr Ram Sharan Mahat said at an ASSOCHAM event here.

He listed out factors like suitable agro-climatic conditions, an industry-friendly environment, 100 per cent foreign direct investment ( FDI) in most sectors, a favourable fiscal policy coupled with various other incentives as key advantages being offered by Nepal in terms of doing business.

Besides, Mahat said Nepal is eyeing investments worth at least $6-7 billion at the upcoming Global Donors Conference in Kathmandu on June 25 to rebuild the Himalayan nation in the wake of the recent massive earthquake.

"We have to revive our economy. Though some resources are being mobilised internally, we need support from the entire international community as almost all the sectors are under stress," he explained.

Over half a million homes, 10,000 schools, various government offices and commercial establishments were destroyed by the quake, which killed some 9,000 people and injured 30,000 across the country, the minister added.