New Delhi: Nepal Prime Minister Balendra “Balen” Shah is preparing for his first official foreign visit, with India expected to be his destination before the end of the year, according to Finance Minister Swarnim Wagle.
The visit dates have not yet been finalised, but the proposed trip is expected to strengthen ties between the two neighbouring countries as Nepal looks to expand trade, investment and economic cooperation.
India remains Nepal’s biggest trade partner
India accounts for around 70% of Nepal’s total trade, making economic ties between the two countries particularly important for Kathmandu.
Nepal is also seeking greater investment from major companies, including Unilever and ITC. However, some reforms relating to contracts and investor-related regulations are being considered to create a more favourable environment for businesses.
Nepal sets an ambitious economic target
Shah has spent his first 100 days in office focusing on domestic priorities. Finance Minister Wagle said the government gave itself a score of 87.2% against its 100-point agenda.
The government is also aiming to transform Nepal into a $100 billion economy within the next five to seven years. It plans to pursue this goal through growth in clean energy, tourism, manufacturing, agriculture and the digital economy.
India visit could deepen economic ties
A first official visit to India would come at an important time for Nepal as it seeks to attract investment and accelerate economic growth.
With India already playing a central role in Nepal’s trade, discussions during Shah’s proposed visit could provide an opportunity to explore stronger economic cooperation and address issues affecting investment.
The visit, if completed before the year-end, would also mark an important first step in Shah’s foreign engagement as Nepal’s prime minister.