NICCI Welcomes Move to Automate Foreign Investment Approvals

The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the government’s decision to automate the foreign investment approval process, describing it as a positive and timely reform aimed at strengthening the investment climate. NICCI stated that the move is expected to reduce procedural delays, enhance transparency, and simplify administrative hurdles for foreign investors seeking approval to invest in Nepal.

By digitizing and streamlining the investment approval process, the government has taken a significant step toward aligning Nepal’s regulatory practices with global standards and investor expectations, according to the chamber. NICCI also recalled its longstanding advocacy for legal reforms to facilitate foreign direct investment and noted that it has consistently submitted recommendations to the government in this regard.

Saibal Ghosh, Co-convenor of the Indian Business Forum (IBF) under NICCI, commended the government’s initiative but emphasized that automation should be viewed as part of a broader and more comprehensive investment strategy.

“While this is a welcome step, it alone may not be sufficient to attract foreign investment,” he said. Ghosh also stressed the need for the new government to introduce incentive packages for new investors that align with schemes offered by various Indian states and the central government of India.

NICCI underscored the importance of developing competitive incentive packages, given the intensifying regional competition for investment. It noted that neighboring countries and Indian states are offering tax breaks, sectoral benefits, and facilitation packages to attract capital from global markets. To remain competitive, Nepal must not only improve procedural efficiency but also create a predictable policy environment and effective post-investment services, the chamber added.

Highlighting the strong economic ties, geographical proximity, and growing cross-border investment interests between Nepal and India, NICCI said it is particularly important to align Nepal’s legal and institutional frameworks with the investment incentives prevalent in India.

The chamber reaffirmed its commitment to working closely with the government, policymakers, and stakeholders to promote investment-friendly policies, position Nepal as an attractive investment destination, and strengthen Nepal-India economic cooperation.