CNI seeks additional subsidy on export of “Make in Nepal” goods

The Confederation of Nepali Industries (CNI) has sought an additional one percent cash subsidy from the government on exports of goods under the "Make in Nepal Swadeshi” campaign. The private sector body has demanded that subsidy for members associated with the “Make in Nepal Swadeshi” campaign while exporting using the collective logo of the Swadeshi, be increased to nine percent from the existing eight percent. “Make in Nepal Swadeshi” is a multi-year campaign initiated by the CNI in partnership with the government of Nepal. Its core goal is to create an ecosystem that promotes domestic industrial production, enhances the competitiveness of local firms, and stimulates demand for Nepali goods and services.

Launched in 2021 amid the Covid-19 pandemic, it aims to establish more than one thousand new industries and increase manufacturing sector contribution to 26 percent of the gross domestic product by 2030 from the current level of less than 14 percent. It also plans to boost the country's export to $5bn annually in the next five years, which is currently less than $1bn.

According to CNI, it is initiating to get a collective symbol for Make in Nepal products. Ram Chandra Tiwari, Director General of the Department of Industries, says that the department will expedite the process to provide a collective trademark to the members of the campaign at the earliest. In a discussion about “Make in Nepal” with the key stakeholders of the government organized earlier this week, CNI office bearers stressed the need to increase cash subsidy on exports which would help resolve the problems of domestic producers. The discussion was attended by secretaries from the Office of the Prime Minister and Council of Ministers, Ministry of Industry, Commerce and Supplies, and National Planning Commission, among other officials. CNI President Vishnu Kumar Agrawal said that Nepal needs to increase the consumption of domestic products for the development of a self-reliant economy. “In the current challenging economic situation, the CNI aims to create a positive environment in the industrial sector and encourage entrepreneurs to establish a favorable business environment. The campaign is an effort for the same,” said Agrawal. Toya Narayan Gyawali, Secretary of Ministry of Industry, Commerce, and Supplies said that CNI's campaign is crucial for promoting exports and replacing imports. “The government is serious in implementing the suggestion of the private sector to stop illegal imports, and increase import duties tax differentiation between raw and finished goods for the development of domestic industries,” he said, urging the private sector to suggest the government for the annual budget for the next fiscal year. Speaking on the occasion, Kewal Prasad Bhandari, Secretary of National Planning Commission, said the contribution of the manufacturing sector to the country's gross domestic product (GDP) had decreased to 5 percent. “In such a situation, both the government and the private sector need to join hands to boost the manufacturing sector.”