Kathmandu. KATHMANDU: Nepal-India Chamber of Commerce and Industry (Nikkei) has welcomed the government’s decision to operate foreign investment clearance service through automatic route, assessing it as a positive and timely reform towards strengthening investment-friendly environment.

The new automatic mechanism for foreign investment published in the Gazette on February 17, 2026 is expected to reduce procedural delays, increase transparency and simplify administrative hassles for foreign investors seeking approval to invest in Nepal.

The government has taken significant steps towards integrating regulatory practices in Nepal with global best practices and evolving investor expectations through the regulatory process to further align with global best practices and investors’ expectations.

Welcoming the government’s move, Nikki Chairman Sunil KC said, “The main responsibility of the incumbent government is to hold elections but it is trying to create business-friendly environment.” He also thanked Industry Minister Anil Singha, Finance Minister Rameshwor Khanal and Prime Minister Sushila Karki for their efforts for facilitating investment.

Nikki also recalled that she had a discussion with Industry Minister Sinha about a month ago, presented her suggestions and urged the government to reform the long-standing laws to facilitate foreign direct investment.

Saibal Ghosh, co-convenor of the Indian Business Forum (IBM) under Nikee, said that while the automation system is a significant improvement, it should be seen as part of a broader and overall investment strategy.

“It’s an appropriate step, but it may not be enough to attract foreign investment,” he said. At the same time, he said that the new government should come up with a scheme to benefit or incentivize new investors in line with the schemes provided by various states of India and the central government of India to attract foreign investors.

As regional competition for investment intensifies, and neighboring countries and Indian states are providing tax incentives, sectoral benefits and facilitation packages to attract capital from the global market, Nepal is focusing on creating stimulus packages. In this way, Nepal should develop a competitive incentive policy, policy predictability and an effective post-investment service system along with procedural reforms.

Given the strong economic interconnectedness, geographical proximity, and growing interest in cross-border investment, easing Nepal’s legal and other structures to encourage foreign investment in India is particularly important.

Nikki reiterated its commitment to continue working closely with the government, policymakers, and stakeholders to build investment-friendly policies, promote Nepal as an attractive investment destination, and strengthen Nepal-India economic cooperation.