The current bout of the malicious campaign by a Nepalese media house against Dabur is going to force Indian investors into their shells, resulting in loss of FDI into Nepal from other countries as well, says industry chamber Ficci.
Indian Joint Ventures (JVs) in Nepal have contributed significantly in increasing Nepal’s exports to India. However, Nepal’s attractiveness as a manufacturing base for India is eroding on account of poor law and order situation.
Kush Kumar Joshi, president, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said Dabur India’s products conformed to international standards and adhered to all the stringent guidelines on quality. “Nepal looks forward to more investment from India and condemns such incidents of misunderstanding between the Indian JV and a Nepal media house. These issues should be resolved amicably in a business-like manner,” he added.
Indian companies have made a significant contribution to the Nepalese economy, both in terms of employment generation and by the way of revenue generation for the Nepalese exchequer. Specifically, Dabur India JV directly employs over 1,000 people and indirectly about 30,000. It has generated revenue of over Nepalese Rupees (NPR) 40 crore to the exchequer.
Indian industry has made a total investment of Rs 1,400 crore. Of this, Dabur’s share is Rs 143 crore. Some of the prominent Indian JVs in Nepal are ITC, Unilever Nepal, United Telecom, SBI, PNB, Manipal Group, SJVN Ltd, Tata Power, GMR India, IL&FS, Asian Paints, LIC and Concor.
“It is Ficci’s firm belief that with a conducive business environment in Nepal, Indian investments could grow manifold, thereby strengthening India-Nepal bilateral business and economic relations. The need of the hour is to encourage Indian investments into Nepal, provide the right framework for investment policies, create conducive labour laws and forge new partnership in the areas of health and education,” said Ficci Secretary General Amit Mitra.
India is Nepal’s biggest trading partner, accounting for 58 per cent of its merchandise trade and one-third of trade in services.
