NICCI proposes joint initiatives with IBN to attract Indian investment

KATHMANDU: Nepal-India Chamber of Commerce and Industry (NICCI) has proposed that the Investment Board Nepal (IBN) take joint initiatives to attract targeted investment from India in sectors such as hydropower and renewable energy, manufacturing and industrial enterprises, information technology and digital services, tourism and hospitality, education and skill development, and healthcare and medical infrastructure.

NICCI President Sunil KC welcomed IBN Chief Executive Officer Sushil Gyewali at his Kathmandu office on Thursday and congratulated him on his appointment to the IBN. On the occasion, KC proposed that Gyewali join forces with NICCI to draw investment into Nepal. "Nepal needs to recreate the magic of the late 1990s and attract more Indian investment to Nepal," he said, urging the IBN to organise a joint investment promotion programme in association with NICCI.

NICCI is also planning to jointly host the "Nepal–India Dialogue" in Kathmandu in collaboration with Network18 Media and Investments, under Reliance Industries, in July 2025. He added that the event would provide an excellent platform for Nepal to showcase its projects and products. "Similarly, NICCI is hosting a 'Nepal–India Partnership Summit' in New Delhi to promote bilateral investment and strategic cooperation," he noted.

In addition, NICCI is conducting sector-specific investment roundtables – including sessions on hydropower – in major Indian commercial cities such as Mumbai, Kolkata, Hyderabad, Bangalore, Ahmedabad, Gujarat, Punjab and Lucknow, focusing on high-potential sectors. The organisation is also producing a short documentary highlighting the success stories of Indian joint venture companies in Nepal to showcase the opportunities and advantages of investing in Nepal to the broader Indian business community, with KC seeking IBN's collaboration in all such investment promotion endeavours.

Responding to NICCI's suggestions, IBN CEO Gyewali said that Indian joint ventures in Nepal can play a key role in promoting the country as an investment destination. "IBN and the government are ready to address the challenges faced by current Indian joint ventures in Nepal, but it is for these companies to spread the positive aspects of investing in the country," he said, adding, "thematic and issue-based investment promotion in Indian cities is crucial. IBN is prepared to work alongside NICCI in these initiatives. We will even facilitate the provision of land free of charge should any foreign firm wish to establish a Special Economic Zone, and we are planning to offer similar facilities and benefits to those afforded to hydropower projects."

Thanking IBN for its support, NICCI Vice President and Surya Nepal Managing Director Ravi Rayavaram highlighted several issues hindering foreign investment. "The land ceiling has become a major hindrance to the expansion of existing industries," he said, adding that concerns over intellectual property rights and policy inconsistency are further significant roadblocks for foreign direct investment. "Internationally reputed brands are often registered in Nepal by locals, which makes it challenging for Indian joint ventures to introduce them here. Similarly, policy inconsistency and the lack of inter-departmental coordination have adversely affected Nepal's business environment."

The NICCI team comprised President Sunil KC, Vice President Ravi Rayavaram, General Secretary Rajan Sharma and Executive Member Kunal Keyal, while the IBN delegation included CEO Sushil Gyewali along with joint secretaries Pradhyumna Prasad Upadhayay and Babu Raj Adhikari.

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