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Kathmandu,Tuesday May 23, 2000 Jestha 10, 2057.
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Hosts of trade issues with India
require urgent concerns
By Prateek Pradhan
KATHMANDU, May 22- Nepal has been boasting of its
geographical location, of its proximity with the huge Indian market of a billion
consumers. The fact that India provides custom-free access to Nepal manufactured goods
also allures foreign investors.
However, the investors, be it foreign or Indian, do
not only go for the aforesaid issues when there are hosts of other problems that affect
the trade seriously.
If Nepal really seeks to attract global investment,
it should be able to maintain its position according to the rule of the game. If Nepal
successfully raise its legitimate voice in trade issues, it will achieve a lot. At the
present global scenario, the buyer country is regarded higher than the seller. But, Nepal
has always considered itself as an underdog, and has been deprived of from many
facilities.
In terms of consumable items, Nepal is the biggest
importer for India. According to provisional figures for 1997/98, Nepal’s total
export to India was worth Rs 9.012 billions, whereas its import was Rs 27.237 billions
leading to trade balance on India’s side by Rs 18.224 billions.
Nepal needs to pay serious attention to reduce such
a huge trade gap with India, for which it needs to enhance its bargaining power strongly.
The poor bargaining power do not only hinder Nepalese businessmen, but it also affect many
Indian investors in Nepal.
The major issue that seeks immediate attention is
hydropower. Nepal has a very huge potential of running water to produce 43 thousand
Megawatt of economically viable power and India has chronic power shortage. But, there has
been no step taken from any side so far.
To attract foreign investment in hydropower, Nepal
has to sign power purchase agreement with India’s central authority like India Power
Grid Corporation or NTPC. Similarly, a solution should be sought for the Indian joint
ventures’ complain regarding employing Indian expatriates in their projects.
When Thai Airways has been recognizing Kathmandu
sector as one of the most profitable routes, Indian Airlines has hardly shown urgency to
reap this benefit. Whereas, the issue to raise air-seats between these two countries has
already been delayed for so long. The Civil Aviation Authorities are expected to meet
regarding the increment in air seats after the resumption of Indian Airlines this June.
This deal is very important for tourism and economy of both the countries.
There are many policy level issues, which need
immediate action, but authorities of both the countries are still sitting over them. As an
example, Treaty for bilateral investment protection has been collecting dust under the
authorities of Nepal government. The other pending issue is agreement related to motor
vehicles.
The major problem for Nepalese businessmen lie at
the Calcutta Customs. There are many cases when Calcutta Customs create hassle to Nepali
importers but nobody really help solve the issue. Indian bureaucrats, due to deep-rooted
corruption, cause all the problems. In this issue Nepal has always failed to attain much.
Its bargaining power is very weak with Indian authorities.
Nepal-India trade relations cannot be improved
until Nepal develops its bargaining power, and India starts looking upon Nepal up as one
of its biggest importers.
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