May 26: The Federation of Nepalese Cottage and Small Industries has stated that the annual policies and programmes presented by the government in the federal parliament for the upcoming fiscal year (FY 2022/23) is overall positive.
During a recent programme, officials of the federation said that it is a positive thing to increase internal and external investment in productive sector with the slogan “Nepali Industries, Employment in Nepal: Our Product Our Business”. The federation also said that the package of entrepreneurship development, financial access, product marketing and export facilitation for small, cottage and medium enterprises also seems positive.
The federation is also hopeful that the policies and programmes will help in the promotion of local products by linking tourism as a dynamic dimension of the economy with all kinds of economic activities.
The federation stated that strengths of the policies and programmes include building specialized skilled manpower as per the demand of the labor market, creating employment for the returnee migrant workers by conducting skill-based business, smoothing the supply chain, reducing external impact on the economy and implementing e-commerce system for market access of industrial products.
In addition, it also mentioned that the provision of increasing exports by reducing production cost of manufacturing and export-oriented industries, facilitating the establishment and operation of startup based business based on innovation, involving the private sector in the construction of infrastructure such as industrial village, industrial zone, special economic zone were all positive steps.
As per the federation, the establishment of industries to produce supplementary materials of big foreign industries to give Nepali products exposure to the national, regional and international value chain is likely have a positive impact on the promotion and protection of domestic industries and manufactured goods. It added that it is a positive aspect to encourage the private sector to establish and operate productive industries by creating industry-friendly environment, improving business environment and increasing government’s investment in basic infrastructure.
Supporting the policies and programmes for the upcoming fiscal year, the federation says that implementing the Farm to Industry Integrated Model Programme to link the products of agriculture, forest and mining sectors in industrial processing chain, developing agriculture as a major driving force for economic growth and employment, integrating cooperative sector with entrepreneurship, production and employment for economic development and poverty alleviation will have a positive impact in the overall economy.
The federation believes that the policy of facilitating credit flow to the productive and employment oriented sectors will easily increase the financial access of cottage and small scale entrepreneurs. According to the policy of reviewing the existing tax system to make it clean, transparent and investment and business friendly, it is necessary to review the tax system targeting business run by small, home-based, cottage and women entrepreneurs who were displaced by the Covid-19 pandemic, the federation said.
The federation expects that the policies and programmes covered by the National Planning Commission will be implemented through the upcoming budget.
