There are various criticisms and praises on going for the recent Bhattarai's act of Bilateral Investment Promotion and Protection Agreement (BIPPA) with India on his recent visit. At the time when the stage has brought a political controversy in Nepalese politics right after the controversy of two ministers being settled, the agreement seems the next challenge for the present Government equally. I am not associated with any party, nor am I influenced by any ideology. I am simply the student of Business. So being student, I feel the BIPPA made with India has to be welcomed by the business world. Why should we welcome this? I don't know what Congress has to say, nor do I care what UML explains, and I am no way associated with PM's party either.
Nepal is located between two world's greatest markets, and when India shares open border, culture and same class of people, Nepal definitely can make a huge gain from this Agreement. BIPPA brings the opportunity of Foreign Direct Investment (FDI) in Nepal. Although introduced in 1992, the following Maoists insurgency made the investors depressed, and as a result Nepal could not get their cup of tea out of it. When will Nepal be able to bring such huge capitals, technology and management skills? Atleast, after welcoming them, it can get its possibility. The painful truth that the economy of Nepal is completely dependent with the remittances makes a clear indication that there are maximum peoples working abroad simply because of unemployment facilities in Nepal. Bringing new investment will welcome new business firms in the country which again will be helping the domestic unemployment problem to the country. People of Nepal will again get to use improved products at the cheap rate, manufacturer of Kurkure if enters Nepal, Nepalese will get to use of it in the cheap rate. They will not be
compelled to pay forty rupees for the product of thirty two.
Government can again earn huge amount of revenue out of these Indian firms. When India opens firms in Nepalese territory, they themselves will try to remove the hindrances that Nepalese are today facing in
the carriage. Balance of Payment (BEP) will be increasing at this very time. As a whole, Industrial Development will gain a speed in the country. This has to be clear that India would never come to this stage if British rule have had not been in India at those periods. It is through British's FDI in India; India made the development process easy and effective. Had not there been FDI from British Rule then, India would be in some what similar condition to Nepal. It is something foolish to curse our history for the bravery, but we still have the power for it. Nepal was more developed than India during the medieval period, and some what had the similar sort of condition during the period before Rana rule in Nepal and British rule in Nepal.
The fact of development possibility in India due to FDI must not be ignored. Parties agitating against the decision are not wrong either. There exists the possibility of loss of Sovereignty in Nepal, but when it is
for India, the chances are comparatively low. The another disadvantage mentioned in my book regarding this is Intense competition, Kurmure would have the worst time competing with Kurkure then, but there are simply fewer domestic products that would go such stage. High Dependency is the third point, but the agreement is for ten years. Resource outflows could act as disadvantage, as the vision for them is in the hydro power sector, Nepal must be able to make enough demand for itself of hydro power before making export in such cases.
The worst part of agreement that has brought the entire controversies is due to the agreement made 'to pay the compensation if the firms shut down due to internal cause of Nepal.' Since Nepal had been headlines as international news in the past, and there had been the image for International vision that Nepal is unsafe for investment, the agreement shows clear possibility and welcoming of investors in
Nepal. Nepal had to take certain bold step to welcome them ensuring the investors that the political disturbance would not trouble their investment, and through BIPPA, Bhattarai did it indicating that now
even more than one half of Maoists are looking for good relation and trade relation with India which was against their principle earlier.
However, exactly like Congress leader Ram Sharan Mahat said, signing the agreement is not a conclusion in it. There are other important things to be noted down. There has to be peaceful environment now, and
Industrial sector must be declared a peace zone providing enough securities to them. The various bandas, chakkajams, loadsheddings and politicial disturbance must be stopped immediately and let the industries conduct their activities in peaceful way, else the treaty would not be boom but curse.
Nepal is located between two world's greatest markets, and when India shares open border, culture and same class of people, Nepal definitely can make a huge gain from this Agreement. BIPPA brings the opportunity of Foreign Direct Investment (FDI) in Nepal. Although introduced in 1992, the following Maoists insurgency made the investors depressed, and as a result Nepal could not get their cup of tea out of it. When will Nepal be able to bring such huge capitals, technology and management skills? Atleast, after welcoming them, it can get its possibility. The painful truth that the economy of Nepal is completely dependent with the remittances makes a clear indication that there are maximum peoples working abroad simply because of unemployment facilities in Nepal. Bringing new investment will welcome new business firms in the country which again will be helping the domestic unemployment problem to the country. People of Nepal will again get to use improved products at the cheap rate, manufacturer of Kurkure if enters Nepal, Nepalese will get to use of it in the cheap rate. They will not be
compelled to pay forty rupees for the product of thirty two.
Government can again earn huge amount of revenue out of these Indian firms. When India opens firms in Nepalese territory, they themselves will try to remove the hindrances that Nepalese are today facing in
the carriage. Balance of Payment (BEP) will be increasing at this very time. As a whole, Industrial Development will gain a speed in the country. This has to be clear that India would never come to this stage if British rule have had not been in India at those periods. It is through British's FDI in India; India made the development process easy and effective. Had not there been FDI from British Rule then, India would be in some what similar condition to Nepal. It is something foolish to curse our history for the bravery, but we still have the power for it. Nepal was more developed than India during the medieval period, and some what had the similar sort of condition during the period before Rana rule in Nepal and British rule in Nepal.
The fact of development possibility in India due to FDI must not be ignored. Parties agitating against the decision are not wrong either. There exists the possibility of loss of Sovereignty in Nepal, but when it is
for India, the chances are comparatively low. The another disadvantage mentioned in my book regarding this is Intense competition, Kurmure would have the worst time competing with Kurkure then, but there are simply fewer domestic products that would go such stage. High Dependency is the third point, but the agreement is for ten years. Resource outflows could act as disadvantage, as the vision for them is in the hydro power sector, Nepal must be able to make enough demand for itself of hydro power before making export in such cases.
The worst part of agreement that has brought the entire controversies is due to the agreement made 'to pay the compensation if the firms shut down due to internal cause of Nepal.' Since Nepal had been headlines as international news in the past, and there had been the image for International vision that Nepal is unsafe for investment, the agreement shows clear possibility and welcoming of investors in
Nepal. Nepal had to take certain bold step to welcome them ensuring the investors that the political disturbance would not trouble their investment, and through BIPPA, Bhattarai did it indicating that now
even more than one half of Maoists are looking for good relation and trade relation with India which was against their principle earlier.
However, exactly like Congress leader Ram Sharan Mahat said, signing the agreement is not a conclusion in it. There are other important things to be noted down. There has to be peaceful environment now, and
Industrial sector must be declared a peace zone providing enough securities to them. The various bandas, chakkajams, loadsheddings and politicial disturbance must be stopped immediately and let the industries conduct their activities in peaceful way, else the treaty would not be boom but curse.
