NICCI praises govt for FDI automation

Kathmandu, Feb. 20

The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the government’s decision to operationalise foreign investment approval services through an automated route, describing it as a positive and timely reform aimed at improving Nepal’s investment climate.

The newly introduced automated mechanism – published in the national Gazette on Monday, February 16 – is expected to reduce procedural delays, enhance transparency, and simplify administrative processes for foreign investors seeking approval to invest in Nepal, NICCI said in a statement on Friday.

By digitising and streamlining approvals, the government has taken an important step toward aligning Nepal’s regulatory environment with global best practices and investor expectations.

“Though the current government had the only mandate of holding an election, it has been trying to create a conducive environment for business,” NICCI President Sunil KC said.

NICCI had organised a closed-door interaction with Industry Minister Anil Kumar Sinha a month ago, submitted recommendations and requested the government to reform the age-old laws to facilitate foreign direct investment.

Praising the government’s move, co-convenor of Indian Business Forum (IBF) under NICCI, Saibal Gosh noted that while automation is a significant reform, it should be seen as part of a broader, more comprehensive investment strategy.

“This is an excellent step, though this alone may not be enough to attract FDI,” he said, adding that the new government needs to come up with a benefit scheme for new FDI investors, which is aligned with investment schemes offered by different Indian states and the central government of India.

NICCI also emphasised that regional competition for investment has intensified, with neighbouring countries and Indian states offering targeted fiscal incentives, sector-specific benefits, and facilitation packages to attract global capital. In this context, Nepal must complement procedural reforms with competitive incentive frameworks, policy predictability, and effective aftercare services for investors, read the statement.

The bi-national chamber further stressed that closer alignment of Nepal’s FDI incentive structures with those prevailing in India would be particularly important, given the strong economic interlinkages, geographic proximity, and growing cross-border investment interest between the two countries.

 Published in The Rising Nepal daily on 21 February 2026.