Meeting Focused On The Amendment Of Foreign Investment And Technology Transfer Act (FITTA) 2019 And Industrial Enterprise Act 2020 And Revival Of Contract Manufacturing To Promote FDIs In Nepal.

A delegation from the Nepal-India Chamber of Commerce and Industry (NICCI) met with the Honorable Minister for Industry, Commerce & Supplies, Mr. Ramesh Rizal, at the Ministry to deliberate on the pressing issues related to contract manufacturing and the current restrictive amendments under the Foreign Investment and Technology Transfer Act (FITTA) 2019 and Industrial Enterprise Act 2020. The delegation, led by President Mrs. Shreejana Rana, stressed the critical need to reevaluate the existing provisions in order to support the growth of the local industrial sector and stimulate foreign investment in the region.

 

The meeting, which took place on Thursday, 19th October 2023, highlighted the importance of contract manufacturing as a key driver for technological advancement and job creation in Nepal. The delegation emphasized the significance of the previously granted permissions for contract manufacturing, including main products, which had not only attracted notable multinational companies (MNCs) to the region but also contributed to the advancement of the local workforce and technological capabilities.

 

President Mrs. Shreejana Rana voiced the concerns of the business community, and stated that the current provisions in the Industrial Enterprise Act 2020 and FITTA 2019 have posed significant challenges to the continuation of contract manufacturing practices, adversely impacting the industrial landscape and limiting growth opportunities for both local businesses and potential foreign investors.

 

In response to the delegation & it’s concerns, Minister Ramesh Rizal expressed a positive outlook, affirming the Ministry & it’s commitment to collaborating with NICCI and the private sector in Nepal, including apex chambers, to find mutually beneficial solutions. He emphasized the need for a conducive environment that promotes investment and fosters economic development in the increasingly competitive global market.

 

The NICCI delegation included Vice President Mr. Sunil KC, Executive Member and Managing Director of Surya Nepal Pvt. Ltd., Mr. Ravi Kumar Rayavaram, Special Invitee to the Executive Committee  and Co-Chair of Indian Business Forum at NICCI and Management Consultant at Berger Jenson and Nicholson Nepal Pvt. Ltd., Mr. Saibal Ghosh, Director General Mr. Keshab Man Singh, and Deputyy Director Mr. Marshal Rathour.  The delegation also comprised prominent industry representatives, including Mr. Samir Shrestha, CFO and Company Secretary, and Mr. G.B. Khanal, Expert at Asian Paints Nepal P. Ltd, Mr. Abhaya Gorkhalee, Head of Marketing of Dabur Nepal Pvt. Ltd. and Mr. Govind Shahi, Company Senior Manager of Unilever Nepal Ltd.

 

Joining the discussion from the Ministry was Joint Secretary Mr. Lila Prasad Sharma who actively participated in the deliberations, expressing the Ministry & it’s willingness to work collaboratively towards an effective resolution.

As Nepal strives to enhance its position in the global market, the need for fostering a conducive environment for both domestic and foreign investment has become increasingly paramount. NICCI and the Ministry & it’s shared commitment to addressing these challenges marks a crucial step towards ensuring sustained economic growth and prosperity in the region.