President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal. File photo.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal called upon Indian investors to explore lucrative investment opportunities in Nepal's key economic sectors during his address at the "An Aspiring Nepal" symposium held today in Kathmandu.

Speaking to an audience that included prominent business leaders and policymakers from both Nepal and India, President Dhakal highlighted Nepal's remarkable economic progress, with the economy growing at 4.9% in the first half of the current fiscal year 2024/25.

"Our agriculture and industrial sectors are showing particularly strong performance, driving this growth momentum," Dhakal noted, while acknowledging some ongoing challenges in the services sector.

The FNCCI president drew attention to Nepal's macroeconomic stability, underscored by healthy foreign exchange reserves standing at $17.27 billion.

He particularly emphasized Nepal's demographic dividend, with a median age of just 25 years, presenting investors with a young, tech-savvy workforce ready to support business growth, according to the secretariat of the FNCCI president.

Dhakal outlined several high-potential sectors for investment such as energy, trade and emerging sectors.

Highlighting the landmark agreement where India has committed to purchasing 10,000 MW of hydroelectricity from Nepal over the next ten years.

Similarly, the continuation of duty-free access for Nepali manufactured goods in the Indian market, even after Nepal's graduation to developing country status in 2026.

Growing opportunities in information and communication technology (ICT), tourism, and commercial agriculture.

The FNCCI chief detailed significant improvements in Nepal's investment climate, including the simplification of foreign direct investment (FDI) procedures through an 'automatic route' system and the amendment of more than 30 laws to create a more business-friendly environment.

"These reforms demonstrate our government's strong commitment to facilitating investment and doing business in Nepal," Dhakal asserted.

Concluding his address, President Dhakal extended a warm invitation to the international business community: "With our strategic location, improving infrastructure, skilled workforce, and investor-friendly policies, Nepal offers unparalleled opportunities across multiple sectors. We welcome Indian and global investors to be part of our nation's exciting growth story."

The symposium, attended by Indian Prime Minister Narendra Modi's Economic Advisory Council member Sanjeev Sanyal, senior government officials and business leaders from both countries, served as an important platform to strengthen economic ties and explore new avenues for bilateral cooperation between Nepal and India.