Nepal and India share immense potential to strengthen economic cooperation: NICCI President KC

Newly elected President of Nepal-India Chamber of Commerce & Industry (NICCI) Sunil KC said that Nepal and India share immense potential to strengthen economic cooperation.

He, however, said that there are gaps that still need to be bridged, particularly in attracting more Indian private investments into Nepal, which have declined recently.

KC said so during a gathering held in Kathmandu on Thursday.

He went on to say that the private sector must play a pivotal role in the economic partnership, especially in areas like infrastructure, energy, tourism, digital economy, manufacturing, and innovation.

“We at NICCI are committed to fostering these collaborations,” he added.

During the event, he highlighted a long-standing challenge of exporting Nepali products to India. For instance, some Nepali shoe brands and agro-products like ginger and cardamom face numerous barriers that need resolution. Addressing these will not only boost Nepal’s economy but also ensure that Indian consumers can benefit from the high-quality goods Nepal produces, KC further said.

He urged all stakeholders to prioritize this matter and work on a sustainable solution.

Furthermore, the NICCI President said that the promotion of joint ventures in Nepali power projects is another key area where both nations can win. Nepal’s vast hydropower potential, when coupled with Indian expertise and investment, can lead to mutual prosperity.

KC stressed on the need of greater collaboration in this sector to harness our energy resources more efficiently.

He underscored that a Nepal-India Partnership Summit should be held every two years to institutionalize dialogue and progress.

 Such a platform would allow stakeholders from both sides to discuss, debate, and resolve critical issues like foreign direct investment, trade facilitation, and economic growth. Regular interaction is essential to building trust and addressing concerns on both sides, he said.

“We also see immense value in establishing targeted partnerships with Indian state governments to focus on attracting FDI in specific sectors. Each Indian state offers unique opportunities, and fostering such collaborations will allow us to tailor investments to meet regional needs and goals,” KC added.

He was of the opinion that the time has come to focus on the future by setting up the Nepal-India Innovation and Entrepreneurship Center. This initiative will support startups, promote innovation, and create opportunities for young entrepreneurs to collaborate across borders, driving sustainable growth and technological advancement.

“We propose establishing a NICCI branch office in New Delhi to create a permanent channel of communication between Indian and Nepali businesses. This will facilitate smoother trade and investment processes and provide a central hub for resolving any business-related issues,” KC said.

The energy minister, the Indian ambassador and former ministers among others were present in the program.