The Nepal-India Chamber of Commerce & Industry (NICCI) has formally called on the government to dismantle long-standing regulatory "bottlenecks," warning that outdated procedures are stifling both domestic growth and the arrival of new multinational players.
Despite India accounting for nearly one-third of Nepal's total foreign investment, the Chamber noted that the inflow of large-scale, new multinational investment has remained stagnant for decades. In a comprehensive 11-point reform proposal submitted to Industry Minister Anil Kumar Sinha, NICCI President Sunil KC emphasized that while the country opened its doors in the 1990s, the "on-the-ground" reality for investors is often mired in duplication and delays.
"The government needs to shift its role from a gatekeeper to a partner for investors," stated NICCI President Sunil KC. "Investors don’t come alone—ecosystems do. Without policy certainty, speed, and reliability, long-term capital will continue to bypass Nepal in favor of more predictable markets."
Key reform proposals
The Chamber's manifesto targets specific "pain points" that currently increase the cost of doing business in Nepal. It has called for stricter action against counterfeit goods and faster dispute resolution to protect international brands.
Requesting that trademark royalties and technical fees should be treated as legitimate business expenses for tax purposes, it has also urged the government to make the "Single Window" mechanism truly functional so industries no longer have to visit multiple agencies. Similarly, it has proposed a risk-based audit system to allow direct payments through banks for service imports, ending the need for multiple manual approvals.
Addressing supply chain realities
NICCI also highlighted the need to modernize the Nepal-India Trade Treaty. One specific demand includes allowing the import of essential raw materials and medicines from regional warehouses in India rather than requiring direct third-country transit. Additionally, the Chamber urged the government to end "abrupt" import bans on industrial raw materials, such as whey powder, which have recently crippled local food processing industries.
By implementing these 11 reforms, NICCI believes Nepal can finally leverage its geographical proximity and cultural ties with India to create a competitive industrial hub that generates mass employment and stabilizes government revenue.
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