KATHMANDU: Minister for Foreign Affairs Shishir Khanal has stressed the need for expanding cooperation in trade, investment, energy, digital technology and tourism sectors to make Nepal-India economic relations productive, diversified and sustainable.

Addressing the 32nd annual general meeting of Nepal-India Chamber of Commerce and Industry (NCC) here on Thursday, Minister Khanal stressed the need to convert the potential of bilateral relations into concrete economic gains.

“Diplomacy is no longer limited to the Ministry of Foreign Affairs, formal talks and treaties. Industry, trade, energy and digital payment system have also become important areas of economic diplomacy,” Minister Khanal said. Stating that India is Nepal’s largest trading partner and an important source of foreign investment, Minister Khanal said that India’s share in Nepal’s total foreign goods trade is more than 60 percent and more than 80 percent of the total goods exports are towards India.

Stressing the need to expand production capacity, create jobs, attract quality investment and diversify exports, he urged the Indian investors to expand investment in Nepal. He said that the investment should help in domestic production, technology and knowledge transfer and connect Nepali enterprises with regional value chains. Minister Khanal also highlighted trade facilitation, investment and industrial partnership, energy, digital transformation and tourism as key priorities for Nepal-India economic cooperation. “There is a need to take forward more investment, transmission infrastructure and regional energy integration by linking Nepal’s hydropower potential with India’s expanding energy market,” he said. He said that Nepali youths and entrepreneurs can benefit from Indian market and technology by expanding cooperation in digital payments, artificial intelligence and financial technology.

Presenting the private sector as an important partner in economic diplomacy, Minister Khanal said that Nepal-India Chamber of Commerce and Industry can play a role in identifying trade barriers, implementing policy decisions, promoting joint investment and exploring new business opportunities.

He stressed the need for effective border infrastructure and predictable business environment to reduce customs procedures, transportation costs and regulatory complexities. He also stressed on the need to connect small and medium enterprises, women entrepreneurs and young entrepreneurs with cross-border trade and investment opportunities.

“In the next chapter of Nepal-India economic relations, ambition should be linked to effective implementation. Concrete achievements of investment, removal of trade barriers, expansion of enterprises and technology sharing should be seen in the progress of cooperation,” said Minister Khanal. He expressed confidence that the Nepal-India Chamber of Commerce and Industry with 32 years of experience, business network and institutional credibility can play the role of a strategic partner to further strengthen Nepal-India economic relations.