Business people and experts have suggested to the government to focus on
hydropower and tourism sectors to bring down ballooning trade deficit
with India.
Speaking at the Business Conclave -- a monthly dialogue on Nepal-India trade, they also expressed dissatisfaction over weak implementation of trade and transit agreements which envisage facilitating bi-lateral trade.
“Our trade deficit with India has grown exponentially over the past decade. We must agree that we have not been able control it,” Arun Chaudhary, former president of Nepal-India Chamber of Commerce and Industry (NICCI), said. “We have to promote hydropower and tourism, on which we have competitive edge, to reduce the yawning trade deficit with the southern neighbor.”
Data shows Nepal´s trade deficit with India rose to Rs 250 billion during 2011/12, compared to Rs 104 billion recorded in 2007/08, Rs 44 billion in 2002/03 and Rs 18 billion in 1998/99.
Nepal suffered trade deficit of Rs 316 billion with the third largest economy of Asia during the first eleven months of 2012/13.
Chaudhary said strong political will would be necessary to change the situation.
Speaking on the occasion, Purushottam Ojha, former secretary at the Ministry of Commerce Supplies Secretary, underlined the fundamentals of the existing trade and transit related treaties with India -- the largest trading partner of Nepal.
“Trade treaties need to be reviewed as per the changed context of global trade. The agreements should be for a fairly longer period with the provisions of bringing changes and termination by giving prior notice to the other party,” said Ojha.
He also said both the countries should address supply constraints, implement trade facilitation measures, particularly focusing on upgrading border infrastructures, mutual recognition and accreditation of the test and certification processes, exchange of trade related data, and allowing temporary entry to equipment and machinery for repair and maintenance purpose, among others.
“It is necessary for Nepal to work closely with India for increasing its export trade with a view to reducing the widening trade deficit and sustaining trade in the longer term. Coordinated effort to enhance the supply capacity and ensure market access by resolving the issues of trade and transport facilitation is necessary,” added Ojha.
Jaideep Mazumdar, Charge d´Affaires of the Indian Embassy in Kathmandu, suggested to the Nepal government to give high priority to power generation so that surplus energy can be exported. “Nepal can bring down skyrocketing trade deficit with the export of surplus energy and bring down the cost of production in local industries,” said Mazumdar.
Mazumdar informed that around 500 Indian joint venture firms have invested IRs 30 billion, closely around 50 percent of the total Foreign Direct Investment (FDI) in Nepal, giving employment to over 60,000 locals.
Shasi Raj Pandey, president of NICCI, said trade with India cannot be in favor of Nepal due to absence of effective implementation of bi-lateral trade and transit related treaties.
On the occasion, Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), lamented that economic agendas were not in the first priority of both Nepal and India.
src : republica
Speaking at the Business Conclave -- a monthly dialogue on Nepal-India trade, they also expressed dissatisfaction over weak implementation of trade and transit agreements which envisage facilitating bi-lateral trade.
“Our trade deficit with India has grown exponentially over the past decade. We must agree that we have not been able control it,” Arun Chaudhary, former president of Nepal-India Chamber of Commerce and Industry (NICCI), said. “We have to promote hydropower and tourism, on which we have competitive edge, to reduce the yawning trade deficit with the southern neighbor.”
Data shows Nepal´s trade deficit with India rose to Rs 250 billion during 2011/12, compared to Rs 104 billion recorded in 2007/08, Rs 44 billion in 2002/03 and Rs 18 billion in 1998/99.
Nepal suffered trade deficit of Rs 316 billion with the third largest economy of Asia during the first eleven months of 2012/13.
Chaudhary said strong political will would be necessary to change the situation.
Speaking on the occasion, Purushottam Ojha, former secretary at the Ministry of Commerce Supplies Secretary, underlined the fundamentals of the existing trade and transit related treaties with India -- the largest trading partner of Nepal.
“Trade treaties need to be reviewed as per the changed context of global trade. The agreements should be for a fairly longer period with the provisions of bringing changes and termination by giving prior notice to the other party,” said Ojha.
He also said both the countries should address supply constraints, implement trade facilitation measures, particularly focusing on upgrading border infrastructures, mutual recognition and accreditation of the test and certification processes, exchange of trade related data, and allowing temporary entry to equipment and machinery for repair and maintenance purpose, among others.
“It is necessary for Nepal to work closely with India for increasing its export trade with a view to reducing the widening trade deficit and sustaining trade in the longer term. Coordinated effort to enhance the supply capacity and ensure market access by resolving the issues of trade and transport facilitation is necessary,” added Ojha.
Jaideep Mazumdar, Charge d´Affaires of the Indian Embassy in Kathmandu, suggested to the Nepal government to give high priority to power generation so that surplus energy can be exported. “Nepal can bring down skyrocketing trade deficit with the export of surplus energy and bring down the cost of production in local industries,” said Mazumdar.
Mazumdar informed that around 500 Indian joint venture firms have invested IRs 30 billion, closely around 50 percent of the total Foreign Direct Investment (FDI) in Nepal, giving employment to over 60,000 locals.
Shasi Raj Pandey, president of NICCI, said trade with India cannot be in favor of Nepal due to absence of effective implementation of bi-lateral trade and transit related treaties.
On the occasion, Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), lamented that economic agendas were not in the first priority of both Nepal and India.
src : republica
