India’s FDI to Nepal: Analysis of Trajectory, Nature, Causes, Outcomes
Description
This paper seeks to explore the path, nature, causes and outcomes of Indian foreign direct investment (FDI) flowing to Nepal in the context of the South Asian Association for Regional Cooperation (SAARC) agreements on bilateral economic relationship. India has a distinguished history of making investments in its neighboring country, Nepal. In fact, India is the main investor in Nepal in terms of paid-up capital. Because India is relatively the most developed country among the SAARC nations, it expected and desirable that it will have greater commitment towards its neighboring Nepal in securing deeper economic integration through employment generation and entrepreneurship development for overall economic development and poverty alleviation. Reserve Bank of India has started publishing detailed data on India’s outward FDI to all its partner countries from June 2012. Indian firms of different sizes have been making FDI to Nepal in both joint ventures and as wholly owned subsidiaries in varied sectors such as manufacturing, retail and wholesale trade, restaurants and hotels, agriculture and mining, electricity and transportation. The objective of this paper is to primarily utilize the RBI data and study the dynamics of Indian FDI to Nepal relative to other SAARC countries and the potentials of furthering the promotion of FDI flows given Nepal’s present investment climate that includes its FDI policy, competitiveness and the availability of key resources like raw materials, skilled labor, energy, etc. Tabular, graphical and statistical, techniques will be adopted for analysis.
India’s FDI to Nepal: Analysis of Trajectory, Nature, Causes, Outcomes
This paper seeks to explore the path, nature, causes and outcomes of Indian foreign direct investment (FDI) flowing to Nepal in the context of the South Asian Association for Regional Cooperation (SAARC) agreements on bilateral economic relationship. India has a distinguished history of making investments in its neighboring country, Nepal. In fact, India is the main investor in Nepal in terms of paid-up capital. Because India is relatively the most developed country among the SAARC nations, it expected and desirable that it will have greater commitment towards its neighboring Nepal in securing deeper economic integration through employment generation and entrepreneurship development for overall economic development and poverty alleviation. Reserve Bank of India has started publishing detailed data on India’s outward FDI to all its partner countries from June 2012. Indian firms of different sizes have been making FDI to Nepal in both joint ventures and as wholly owned subsidiaries in varied sectors such as manufacturing, retail and wholesale trade, restaurants and hotels, agriculture and mining, electricity and transportation. The objective of this paper is to primarily utilize the RBI data and study the dynamics of Indian FDI to Nepal relative to other SAARC countries and the potentials of furthering the promotion of FDI flows given Nepal’s present investment climate that includes its FDI policy, competitiveness and the availability of key resources like raw materials, skilled labor, energy, etc. Tabular, graphical and statistical, techniques will be adopted for analysis.