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Measures to promote investment

(Ref:NEPAL and INDIA)

WHAT ARE THE MEASURES TO INFLUENCE INVESTMENT DECISIONS

TO PROMOTE INVESTMENT IN A COUNTRY, FOR WHAT?

Basic Criteria for creating investment environment:-

1. Government security and protection 2. Provision for FDI(foreign direct investment) 3. Mutual co-ordination among various nations 4. Government flexibility 5. Infrastructures 6.Political stability 7. Exploring country to the world

The measure to promote investment (Ref:Nepal and India)

There basic measures are:-

1.Monetary measuresInterest Rate ReductionBank Rate ReductionCash Reserve Ratio(CRR) ReductionOpen Market Operation

2.Fiscal measuresSubsidizing investmentLower import dutyTax holiday

What investor observe before doing investment decision?

1. INVESTMENT OPTION 8. REGULATORY LAW

2. ECONOMY 9. INVESTMENT INCENTIVE

3. COST 10. LIMITING FACTORS

4. LABOUR5. CLIMATIC CONDITIONS6. CULTURE7. INFRASTRUCTURE

Limiting factors in Nepal and India

•Political instability•Corruption•Environmental clearance problem•Poor infrastructure•Terrorist attack •Power shortage•Bureaucratic hassles•Land acquisition problem

CURRENTLY WHAT NEPAL IS DOING FOR INVESTMENT PROMOTION

Promoting Nepal all over the worldCreating trust and confidence among various nations Has signed BIPPA with India (bilateral investment promotion and protection agreement) Have an agreement with China and Japan to invest

in NepalPromoting FDI(Foreign direct investment)Directing attention towards Hydro-electricity projects

and road networks

Indian current policies for investment promotion

The government moves such as retrospective amendments to Income-tax laws and the General Anti-avoidance Rules(GAAR)

Ambitious targets are fixed on road,airports,railways, electricity generation and coal production

Attracting FDIs and Multi brand retail

THANK YOU