Indo Nepal trade and future possibility of business in Nepal.

Indo Nepal trade and future possibility of business in Nepal.

In recent year with established of diplomatic and economic relation with increase number of country still India play a major role in Nepal economic. Nepal imported good worth of rupee 397 billon from India out of total import 601 .20 billion in previous year. most of development work carried in Nepal are done by Indian companies.

India and Nepal signed a foreign trade agreement FTA in 1971 which has been renewed many times latest in 2009. India Nepal trade treaty of 1996 was land mark as India provides duty free access to all product manufacture in Nepal except restricted category. If we see in export then Nepal have exported 77.35 billion rupee product to India which is 69.9 of total export .Main export item are:

·         Iron

·         Steel product

·         Jute product

·         Noodles

·         Tea

·         Ginger

If you see import item then it was been dramatically structural change Nepal import consist of

·         petroleum product  : 111.12 billion

·         Iron steel : 57.40 billion

·         Transport  and parts  32.30 billion

·         Cereals worth 20.92

With new era of Nepal it times to seek a better opportunity of doing business. Due to lack of Management and a government strategically plan we are lack behind. Our county in a buffer country where two giant growing towards super power of 21^st century. Due to leadership deadlock in Nepal politic we are still a one of the poorest country in world. We can dramatically improve our economic situation.

 There is a enormous resources in Nepal it is been estimate that Nepal can produce 43000 mw hydro power which is economically viable. But till date we didn’t utilize 25% of it. Nepal needs to develop more effectively regulatory structure policy framework to give sustainable economic development.

Government must take some punitive step to attract oversea businessmen to invest in Nepal. The small scale business makes it difficult to attract oversea investors. Lack of trade organization register with government and there activity is null in respect to contribute to GDP. Government should give a special category to trading company so that a more and more private trading company starts to do business. It will also improve balance of payment position by promoting export to increase foreign exchange earning as well as fulfilling internal demand of quality product.

It`s not like that a Nepal is not showing a improvements stock market capitalization increase by 42.2 % to rupee 557.43 billion in mid October 2013 the ratio of market capitalization to GDP stood at 33.8 % in mid oct 2013 compare to 26.3% in previous year. It show a continuous growth of Nepal economic where a situation is worse.

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