Kathmandu. KATHMANDU: Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the monetary policy for the fiscal year 2083/84 released by Nepal Rastra Bank and urged the government to accelerate investment-oriented economic reforms.

Issuing a press release on Wednesday, the association welcomed the monetary policy with the objective of maintaining macroeconomic stability with the goal of achieving high economic growth.

According to NICCI, Nepal’s economy is gradually moving on the path of recovery amidst global geopolitical uncertainties, fluctuations in energy prices and international economic changes. The latest Macroeconomic Report for July 2026 showed improvement in the external sector, liquidity of the banking system, foreign exchange reserves and investor confidence, adding that it has laid a strong foundation for economic expansion in the coming fiscal year.

The NRB has also praised monetary policy adopted by Nepal Rastra Bank to support the government’s goal of 7 per cent economic growth by keeping inflation within the threshold of 5.5 per cent. Keeping the policy rate unchanged, continuing the interest rate corridor, maintaining adequate liquidity in the banking system and maintaining the exchange rate stability with the Indian rupee will increase business confidence and create investment-friendly environment.

The statement also welcomes policy provisions such as financial sector reforms, simplification of banking rules, consolidation of financial stability, promotion of digital banking, reform of credit appraisal system, strengthening of debt recovery mechanism and easing foreign exchange management.

However, NICCI said that the current economic situation provides an opportunity to address the structural challenges in private sector investment. Despite adequate liquidity and low credit rate in the banking system, credit expansion of the private sector is relatively weak, mainly due to lack of financial resources but confidence of investors, policy stability, project preparation, regulatory complexities and slow pace of implementation of economic reforms.

Stating that monetary policy alone was not enough to achieve sustainable economic growth, the association stressed the need for structural reforms to create fiscal discipline, effective implementation of capital expenditure, policy stability and conducive environment to do business.

The committee has urged the government to promote investment in the manufacturing sector, especially in manufacturing industries, hydropower, tourism, agriculture, information technology and export-oriented industries. Likewise, it has stressed on the need of creating a predictable and investment-friendly regulatory environment to attract foreign direct investment including from India and streamlining the investment approval process by increasing coordination among Nepal Rastra Bank, Ministry of Finance and other regulatory bodies.

The association has also urged the government to mobilize liquidity in the banking system to productive sectors, promote export competitiveness and value-added products, further improve foreign exchange management, technology transfer, royalty payment and return of investment. In addition, emphasis should be given on infrastructure development, industrial corridors, transportation and cross-border trade facilitation.

“Nepal has got an opportunity to transform from consumption-based economy to investment and production-based economic growth due to improvement in private investment, remittance inflow, foreign exchange reserve and FDI,” reads the statement.

Noting that close Nepal-India economic ties offer huge potential in manufacturing, energy trade, supply chains, digital services, tourism and cross-border investment, NICCI believes that stable macroeconomic policies and predictable regulatory reforms will further strengthen the economic partnership between the two countries.

It has reiterated its commitment to work continuously for investment promotion, industrial development, trade facilitation and policy reforms in collaboration with NRB, Government of Nepal, Indian investors and the private sector. Nepal could achieve sustainable, investment-oriented and high economic growth with the effective implementation of monetary policies, timely mobilization of development expenditure and policy-level coordination.