National 8 (Spotlight Weekly)

‘There Is No Proper Body That Can Act As Facilitator Or Catalyst In The Overall Bilateral Relations’

— Rajendra Kumar Khetan

Rajendra Kumar Khetan, son of the renowned industrialist Mohan Gopal Khetan, is a well-known figure in the country's business sector. Young and articulate Khetan is also the spokesperson and second vice president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI). He spoke to KESHAB POUDEL and SANJAYA DHAKAL on some contemporary issues. Excerpts:

What is your observation regarding the current Indo-Nepal relations?

On the basis of India's size, its population, its economy and its presence in the international arena, there are scopes for Nepal to reap benefit for its socio-economic upliftment from its good relations with India. In true terms, both the countries have been unable to tap the potentials of these scopes. On Nepalese side also we find many lacking in the diplomatic front as well as in other areas of cooperation. Apart from the formalities of prime minister's visit to India and some efforts to sort out issues raised at national level, there has been absence of periodical visits in say home ministerial, home secretary, foreign ministerial, chief secretary level. Though India is our next door neighbor, you can find our lawmakers making lesser visits there compared to their visits abroad. In short, I must say there has not been enough efforts, on our part, to capitalize on the bilateral relations.

What about the trade relations?

On the request of private sector, India and Nepal entered into a special trade treaty in 1996 under whose provision India agreed to open its market to Nepalese products with up to 20 percent value addition. There were lots of efforts to explore potentials provided by this provision. Later on, there were many reports of misuse of this provision and last year during the renewal of the treaty this provision was slightly altered to raise the value-addition level to 25 percent, which was good for Nepal. Higher the value addition level, better for Nepal. When we compare Nepal's economy with the GDP of India, it is miniscule. The peace, stability and prosperity of Nepal are also in India's interest because when more and more Nepalese are educated, the bilateral relations between the two countries at every level will begin to flourish. Trade is the only sector that can rescue the country out of poverty and unemployment. For trade to prosper we must have good relations with India and we must also appreciate India's approach in going out of the way and renewing the special trade treaty considering the conditionalities imposed by the WTO regime.

There is a lot of fluctuation in Indo-Nepal relations. Do you see some sort of permanent mechanism that is in place to monitor and sort out the disputes between the two countries?

Yes, there is as far as trade is concerned. The Inter Governmental Committee (IGC) is one such instrument. However, it has not worked periodically and it does not meet frequently. Issues like the ICDs or dry ports and the setting up of two additional quarantine posts have taken a long time in getting sorted out. India has recently revoked anti-dumping duty on zinc oxide an acrylic yarn, which we must appreciate. The treaty envisages for healthy development of Nepalese or joint venture businesses here. For that to happen, we must identify the potential sectors first. Likewise, the issue of SAARC region joining the WTO as a bloc instead of doing so in isolation is also quite significant. Nepal can also reap many benefits by developing not only its bilateral relations with India but also its multilateral relations with India at say, the SAARC level. However, unfortunately, the SAFTA is not taking off as desired. But we are still hopeful. Moreover, I still do not see a proper body to facilitate or act as catalyst in the overall relations of our two countries. The forums like B.P. Koirala foundation have become too technical. It is necessary to have a friendship body of say ex-PMs, politicians, bureaucrats, civil society and even royalties from India. There are many people in India who have lot of goodwill for Nepal. Likewise, to expand our relations, Nepal should have at least 10 consulates in India in places like Hyderabad, Jaipur, Chennai, Mumbai, Bangalore and Kanpur. And there should be trade points of Nepal at different places in India as well. FNCCI is keen to offer its technical hand in realizing these things.

How do you find the prospects of foreign, especially Indian, investment in Nepal at present?

We were included in the both prime minister's as well as His Majesty's visit to India this year representing the FNCCI. What I found distinctive in both the visits was that the Nepalese government tried to convince the Indian investors to come here. They were promised every support in the appeal by His Majesty. The Indian investors were convinced that Nepal is receptive to them despite the ongoing instability. Moreover, the success stories of Dabur Nepal, Nepal Lever and Surya Tobacco, too, have sent a positive signal. However, issues like security, anti-India feeling in Nepal, some anomalies in industrial enterprises act, taxation and labor policies have not helped the matter. These issues are pre-requisite not only for Indian or any other foreign but also for the domestic investment. If we begin to sort these issues out one by one, I see lot of potential in three things: investment from India - producing in Nepal and exporting to India, multi-nationals coming to invest here with eye on the Indian market and in the tourism sector. New concepts like religious, health or sports tourism can work well. As Nepal is home to Pashupatinath and Lumbini, two most sacred places for Hindus and Buddhists respectively, there is ample scope to develop these. There are 200 million middle class families in India. If we can only lure one percent of them, we can change the face of our economy. We need employment opportunities for roughly four million of our people. To one million, we have already catered and the rest three million can easily find jobs if we can tap this sector.

What do you think about the so-called anti-India feeling in Nepal?

In Nepal, we often talk about the over-bearing role of India, which is presumably fueling the anti-India feeling. But this is silly, I think. As a citizen my responsibility is to bring Nepal and any other country in the world closer by virtue of people-to-people relations and by virtue of socio-economic and political relations. Instead of talking about vested interests, we should concentrate on how we can bpersons are well aware of our issues and agenda. So, we do not have to engage in advocacy and lobbying as hectically as before. But there has been lot of talks in town that if the present government, too, does not pay attention to the issues of business community, they will be hard pressed to raise it in future. So everyone is watching keenly how this government puts into implementation our demands.

persons are well aware of our issues and agenda. So, we do not have to engage in advocacy and lobbying as hectically as before. But there has been lot of talks in town that if the present government, too, does not pay attention to the issues of business community, they will be hard pressed to raise it in future. So everyone is watching keenly how this government puts into implementation our demands.