HEADLINE NEWS THE RISING NEPAL (DAILY)

Trade sector pins high hopes on PM’s India visit

From Lok Deep Thapa

New Delhi, July 28: Prime Minister Girija Prasad Koirala’s forthcoming official visit to India has created much optimism among the business community here, who hope"concrete developments" will take place in trade, investments and also in the waiver of the SAD (Special Additional Duty) tax on Nepalese imports.

An important meeting between the businessmen and industrialists of the two countries will first take place on August 1. Members of India’s Confederation of Indian Industrialists (CII) and Nepalese representatives of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) will hold a joint discussion on that day. Deputy Director of CII GD Sharma while talking to this reporter said that he had big expectations from the forthcoming visit of the Nepalese Prime Minister.

Then there will be a presence of a large group of Indian businessmen in Bangalore on August 4 and this time members of the Federation of Indian Chamber of Commerce and Industry (FICCI) will hold talks with their Nepalese counterparts. Additional secretary of FICCI Krishna Kalra like CII’s Sharma, is full of hopes that there will be positive developments on the trade front after PM Koirala’s visit.

A much discussed issue in Nepal, the SAD tax, which has been imposed on imports to India and which has affected Nepalese exports to this country, is most likely to be waived very soon. A source in the Royal Nepalese Embassy here informed that top ranking Indian officials, including ministers, have given positive assurances regarding this. "There is a very likely chance that this additional duty on Nepalese imports will be done away with soon," he said.

In an interview given to The Times of India daily a few days back even Prime Minister Girija Prasad Koirala had expressed the confidence that "it (SDA) will be removed before my visit.

Chairman of the Bharat-Nepal Maitri Sangh R. N. Marda insisted that there should be no duty on any Nepalese goods. He also was optimistic that the duty will be waived as far as Nepalese imports are considered.

Similarly, Krishna Kalra, additional secretary general of FICCI, experssed the hope that the Indian government will waive SAD. However he cautioned that this was a government decision and all people like him could do was to hope for the best.

According to latest figures, in the last nine months Nepal exported goods worth Rs. 15,685.1 million whereas Indian goods imported was worth Rs. 29,837.4 million. So in that period alone there was a huge deficit of Rs. 14,152.3 million from the total trade of Rs. 45522.5 million. In 1998-99 the deficit amounted to Rs. 19,589.0 million out of the total trade of Rs. 44,650.4 million.

There had been a slight improvement in the trade deficit figures after Nepalese imports were given concessions, but once more the deficit increased after Nepalese exports suffered because of SAD.

Talking of Nepal-India trade, FICCI secretary general Kalra emphasised that it should grow ten or even 20 times more than what it is today. "There is no reason why it should not grow more when the two countries have such good neighbourly relations." He recalled that discussion was held in the same line when Nepalese Foreign Minister Chakra Prasad Bastola was in New Delhi one month back. "When there is so much commonality, trade has to increase", he said.

Meanwhile Deputy Director of the Confederation of India Industrialists, G.D. Sharma expressed the view that Indo-Nepal trade will gain new heights and Indian investments in Nepal will also increase after the visit of PM Koirala.

Sharma informed that CII is very actively working in Nepal and it has formed a Joint Economic Cooperation forum with the FNCCI. "Meetings are held regularly in Nepal and India under this forum," he said.

Royal Nepalese Ambassador to India Dr. Bhekh Bahadur Thapa also described the trade and transit treaties between Nepal and India as "close to perfect". However, he expressed the view that there still has to be some "improvements" in the implementation level.

Bharat-Nepal Maitri Sangh Chairman Marda defined Nepal-India relationship as "exemplary in the whole world" and he expressed the view that such friendship can be used for everything, even "bettering trade relations".

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