Kathmandu: A delegation from the Nepal-India Chamber of Commerce and Industry (NICCI) met with Minister for Industry, Commerce and Supplies Ramesh Rizal on Thursday at the Ministry to deliberate on the pressing issues related to contract manufacturing and the current restrictive amendments under the Foreign Investment and Technology Transfer Act (FITTA) 2019 and Industrial Enterprise Act 2020. The delegation, led by NICCI President Shreejana Rana stressed the critical need to reevaluate the existing provisions in order to support the growth of the local industrial sector and stimulate foreign investment in the region.
The meeting highlighted the importance of contract manufacturing as a key driver for technological advancement and job creation in Nepal. The delegation emphasized the significance of the previously granted permissions for contract manufacturing, including main products, which had not only attracted notable multinational companies (MNCs) to the region but also contributed to the advancement of the local workforce and technological capabilities.
Rana voiced the concerns of the business community, and stated that the current provisions in the Industrial Enterprise Act 2020 and FITTA 2019 have posed significant challenges to the continuation of contract manufacturing practices, adversely impacting the industrial landscape and limiting growth opportunities for both local businesses and potential foreign investors.
Minister Rizal expressed a positive outlook, affirming the Ministry’s commitment to collaborating with NICCI and the private sector in Nepal, including apex chambers, to find mutually beneficial solutions. He emphasized the need for a conducive environment that promotes investment and fosters economic development in the increasingly competitive global market.