The Federation of Nepalese Chamber of Commerce and Industry (FNCCI) and the Confederation of Indian Industry (CII) on 24 February 2014 agreed to organise Nepal-India Economic Summit every year. This summit will be held alternatively in the two countries.
This decision on Nepal-India Economic Summit was made during a meet of the President of FNCCI, Suraj Vaidya and incoming President of CII, Ajaya S Shriram at the FNCCI secretariat in Kathmandu. Shriram is on the official visit to Nepal to take part in the Nepal Economic Summit 2014 has been held from 24 February to 26 February 2014 with the slogan Destination Nepal for Investment.
Apart from this, two business organizations from India have also agreed to play a strategic role for developing hydropower projects that have been long pending in Nepal. The private sector has also agreed to make a joint study in Nepal to find out the possible areas for improvement in the country for new trade treaty.
Economic Relation between India and Nepal
India is one of the largest foreign investor in Nepal after China. New figures released by Nepal’s Department of Industry says that, China has took over India to become the largest contributor of Foreign Direct Investment to Nepal over first six months of the current fiscal year. China’s investment in Nepal reached to 174 million US dollar between July and December 2013.
India is also the major export destination of Nepal products. It is expected that this meet and plan to organise Nepal-India Economic Summit every year will enhance the promotion of bilateral economic and trade relations between the two countries.
The special relation between India and Nepal was initiated in 1950 with Indo-Nepal Treaty of Peace and Friendship, which also defines the security relations between the two countries. The agreement also governs both bilateral trade and trade transiting Indian soil.