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While addressing the Summit, the Union Minister said that India and Nepal have wide ranging engagement in trade and investment and that Nepal is well poised to attract further FDI from India by creation of a conducive legal and regulatory framework. 

 

India is Nepal’s largest partner in trade and investment with more than two-third of Nepal’s trade being with India and India accounting for nearly 40% of total FDI in Nepal, the minister said. 

 

The two countries have open border, grant national treatment to each other’s citizens and millions of Nepali citizens live and work in India. 

 

The Indian minister pointed out that Nepal has several important sectors such as hydropower, transmission lines, road and rail networks, health, education, tourism, irrigation etc in which it can attract Indian investments. India is ready to invest in the projects of Kathmandu-Nijgadh fast track road, second international airport at Nijgadh, Koshi High Dam etc. 

 

During his official visit, the Union Minister of Finance called on the President of Nepal Bidya Devi Bhandari and Prime MinisterPushpa Kamal Dahal Prachanda. 

 

Jaitley also held meetings with Deputy Prime Minister and Finance Minister of Nepal Krishna Bahadur Mahara and Industry Minister Nabindra Raj Joshi. 

 

In his bilateral meetings, the Union Minister of Finance conveyed India’s abiding commitment to partner with Nepal in meeting its aspirations for socio-economic growth. 

 

Recalling the construction of several Integrated Check Posts, rail links, Hulaki roads, schools, health posts, etc with Indian assistance, Arun Jaitley stated that India stands ready to make available more soft loans for new infrastructure projects which would enable Nepal grow at a fast pace. 

 

In order to address the issue of high trade deficit, Jaitley suggested that Nepal may expand its export basket by attracting more Indian investment in export-oriented industries. Further, the early completion of power projects like Upper Karnali and Arun-III, Nepal would be able to export electricity to India. 

He urged that the issues of forest land and land acquisition which have delayed the projects should be resolved at the earliest. 

 

The Nepali leaders thanked Arun Jaitley for India’s development assistance and highly appreciated India’s assistance for post-earthquake reconstruction of Nepal. 

 

Deputy PM Mahara in particular thanked the Government of India for facilitating export of nearly 380 MW of electricity throughout this winter which has enabled several regions of Nepal become free of load-shedding. 

 

The two countries now have transmission lines for trade of nearly 500 MW of electricity, which would increase to over 750 MW by mid-2017.