FNCCI President Pashupati Murarka was addressed at the Business Meeting organised by CII, FICCI, ASSOCHAM during the official Visit of Rt. Hon'ble prime minister of Nepal to India, New Delhi, 21 February 2016.
The full text of the Mr. President Speech's is as follows:
I am deeply honoured to speak in this eminent gathering. On behalf of the business delegation accompanying Rt. honourable Prime minister of Nepal and the entire Nepalese business community, I thank our valued friends and hosts CII, FICCI and ASSOCHAM for organising this event and the warm hospitality extended to us.
Nepal and India have a very unique relationship that is found nowhere in the World. We are bound not only by nature and economy but also by familial ties often termed as of Roti and Beti now-a-days. The well-being of our people on bothsidesof the border is dependent on increased cooperation between the two countries on various fronts; from economy to ecology, and from politics to population. Such a relationship may turn sour if we do not nurture and nourish it,and look after each other's concerns and aspirations.
The people of Nepal, especially the business community has been impressed with the rapid transformation in the lives of the people of India under the visionary leadership of Rt honourable Prime minister ShriNarendraModiJee. We still recall his visit to Nepal and his address to the Constituent Assembly with great admiration.
Unfortunately, we witnessed a low in our relationship recently. But, I think by now, we have withstood the high tides of disturbances and with the official visit of our Rt. honourable Prime Minister to India, we are going to embark on a new and glorious path. Nepal has passed the phase of internal conflictand instability. Now, with the promulgation of the New Constitution, a new phase of peace and stability will begin, and hope, the captains of the Indian Industry assembled here will take note of it.
Although Mr.Radesh Pant has simplified my jobby making a presentation on investment opportunities in Nepal, let me briefly touch upon the Indian Investment and Nepal.
Indian Investment abroad is growing by leaps and bounds. I am told it was over 9 billion dollars in 2014 alone. But Indian investment in the neighbouring Nepal has not grown in the same manner. There was a distinct interest from Indian industry to invest in Nepal in the 90s. The landmark trade agreement of 1996, which to a large extent was made possible by the joint work of FNCCI and CII, played a role. But the momentum could not be sustained.
We once again started to see some movement after the visit of Indian PM to Nepal and hope the investment flow will take momentum after this current visit.
While talking about investing in Nepal, let me inform you that Nepal is a sizable market of about 30 million people with a population growth rate of 1.82 percent per annum. A report by ADB suggested that Nepal has a huge purchasing power, with a middle and higher-class population of 23.36 percent with a combined annual expenditure of USD 10.72 billion in Purchasing Power Parity (PPP) term. And remember, this report was published six years back in 2010.
Here, I would also like to mention that major Indian companies like Surya Nepal (subsidiary of ITC), Nepal Lever, Dabur Nepal, Everest Bank, Nepal SBI Bank, among others, are extremely profitable companies in Nepal. Recently, TeliaSonera sold its stake at Ncell, which is a telecommunication giant in Nepal, to Axiata Group of Malaysia for more than a billion USD. This speaks something about investing in Nepal.
India is the biggest trading partner of Nepal, commanding almost two-third share of the total trade. However, the trade seems to be a one-way affair. Nepal imports from India more than nine times of what it exports. The trade deficit of approximately 3 billion USD is unsustainable. Nepal in fact is overstretched in managing exchange and payment for import from India. We have to find ways and means to correct this imbalance. We need to develop new products and services that have a ready demand in India, and also work on eliminating the barriers coming in the way of increasing export from Nepal.
It is time we take the initiative once again. After all, it is the business community that makes trade and investment happen. Using this occasion, I call upon the governments of both countries to use the existing mechanism of the private sector, to further economic cooperation between the two countries.
The private sectors of both the nations have been traditionally working together. We very much cherish the memory of working with all the apex chambers of India.
On behalf of FNCCI and the entire Nepalese business community, I would once again like to invite you to do business in, and with Nepal. FNCCI is always ready to cooperate and welcome the foreign investment.
In conclusion, I would like to quote Rt. Hon'ble Shri Modijee by saying-"our relations have not moved forward with mere documents but through the heart of our people. Let us work together to attain our common dreams and aspirations."
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