A poor showing at Vibrant Gujarat Summit

The Vibrant Gujarat is a flagship investment summit of India’s Prime Minister Narendra Modi which has drawn the regional leaders and leading countries demonstrating commitment and keenness to share the pie of economic growth opportunity that India offers.

Japan, Australia, the UK, the US, Norway and the Netherlands, among others, were actively seen to showcase their companies, strengths and collaboration projects at the summit where Who’s Who of India’s Business was present. At this perfect platform for networking and striking partnerships for the future, it was clear that countries wanted their share of success in Aatmanirbhar Bharat—Viksit Bharat 2047.

Days ahead leading to the summit, international diplomatic leaders could be seen highlighting their pavilion and promoting their capabilities. X and other social media platforms were full of posts from these countries on how they engaged with Prime Minister Narendra Modi as he visited their pavilions. They were engaging with the media to showcase their partnership, the strengths of their collaborations and where they can make a difference in the future.

Nepal was one of the 35 partner states, who had the opportunity to host a pavilion. The Nepali delegation was led by the Finance Minister Prakash Sharan Mahat together with Ambassador Shankar Sharma. The Indian government website of communication of government policies and outcomes tweeted around seven minutes byte of address by Mahat. Other than that, half day into the first day, there were no signs of Nepali industry, pavilion and business persons. There was no coverage in Nepali media of what Nepal could bring to the summit and in which sector. Automotive, defense, precious stones, energy, industrial innovations, tourism and education were among the country’s presentations.

 For example, Australia’s presentation at Country Seminar is under the title “Australia–your destination for business, industry, study and tourism”. Saudi Arabia, the EU, Malaysia, Singapore, the UK, Germany, Vietnam, Kazakhstan, Oman, the UAE, Ukraine, Korea, Mozambique, and many others presented at the Country Seminar. Nepal’s country presentation was also listed  in the queue of the Country Seminar.

But the big question for now is that does Nepal leverage enough when invited? When the G20 India Summit invited Bangladesh as a special guest, there was an outcry as to why Nepal was not important enough to be invited to G20 India Summit. Perhaps this calls for an assessment in light of Nepal’s participation at Vibrant Gujarat. Does Nepali leadership at PMO, Ministry of Foreign Affairs and Ministry of Industry work in sync to make that difference and have a strategy to reverse the imbalance in the country with higher ODA than FDI? What preparations did they do ahead of “Vibrant Gujarat”?

Today the flagship business summit of India is being attended by world class industry leaders but Nepal’s Minister for Industry, Commerce and Supplies, Ramesh Rizal or Sushil Bhatta, CEO of Office of the Investment Board Nepal or president/leaders from Chambers of Commerce as FNCCI, NICCI, CNI or other leading businesspersons of Nepal are not visible. Interestingly, MoICS Minister Rizal attended the Nepal Country Pavilion at 6th CIIE held in Shanghai (China) toward the end of Nov 2023.  Wasn’t this an opportunity to engage with Indian and global leadership and other country leaders to showcase Nepal as a hub for tourism, service industry, mass manufacturing and winter sports. One of the most evident miss out is on Nepal’s reservoir of hydro energy and traditional medicines and herbs which contribute to green energy to better health.

Nepal will soon host its third International Summit, “Nepal Investment Summit” (NIS2024) in April 2024 and preparations are underway. This was a unique opportunity to promote NIS 2024, what it entails at the Nepal pavilion during VGGS2024. Senior leaders from Chambers of Commerce such as FNCCI, CNI and NICCI should have accompanied Mahat and engaged with international leaders on the margins of VGGS2024. With discussions on “Workforce for Future: Development of Skills for Industry 4.0”, Nepal could have showcased the diverse skill set and plans of Nepal Young Entrepreneurs’ Forum.

Prime Minister Modi visited many pavilions but did his visit to the Nepal Pavilion materialize or not? There were no photos, commentaries, or effort at any level to use as a pre-event marketing material and how it leads to NIS 2024. This shortcoming was evident. At a time when Nepal’s FDI performance in 2022 was bleak with mere $65m and recent exits of International Corporations as Malaysia’s Axiata and Pakistan’s Habib Bank from Nepali market and high level corruption cases have potentially dented the confidence of an international investor, is Nepal not keen to grow FDI and wants to be a donor’s ODA dependent country?

Who is to be held accountable? Did such a lapse occur for the first time? Previously, on many such occasions the business community did not take interest to participate and showcase their vision. Is it merely a political transition problem or to be blamed only on bureaucratic hurdles but the fact remains that there is a lack of sync between leadership in the political and business sectors.

The Nepali Mission led by Ambassador Sharma has made great inroads across industry and sectors. In my discussions from time to time, it appears that stakeholders from Nepal are not enthusiastic or more busy in domestic politics, that they do not prioritize international visibility, dialogue and partnerships. It wouldn’t be wrong to say that Nepali leaders have not leveraged the hard work and network of Ambassador Sharma and his team.

None of the above can happen till the time country leadership takes the reins of growth and the roadmap that leads to it. Vibrant Gujarat is led by Prime Minister Modi and CM Bhupendra Patel. Prime Minister Modi over the last 10 years has worked on the ground and around the world in working out partnerships for the private and public sector to implement. Even if Nepali political leadership succeeds in securing a stage to showcase and get an international commitment of investment, it is for the bureaucratic and business arm to make it happen. This is where investment summits/conferences under the GoN or chambers of commerce become more “check in the box” without actual conversions.

 The ownership, collective leadership and the will at all levels is self-defeating. Today, a Nepali is only concerned with watching his/her own interest and Nepal has been turned into an orphaned state with highest ODA in South Asia or made out as one by inaction and lackadaisical approach where more interpretation and analysis can be seen than action. Nepal had huge potential of high productivity but it has now been reduced as a trading country and treasury full of remittances, where both strategies will drive the workforce to foreign lands in search of work. It is easier said than done that foreign countries erode the richness of Nepal when its own leaders are responsible for the state of affairs. 

The author is a financial, geopolitical and security analyst