Foreign Minister Dr. Rana urges India to open additional air routes to Nepal

KATHMANDU, DECEMBER 20: Minister for Foreign Affairs, Dr. Arzu Rana Deuba, has urged India to open additional air routes to enhance tourism and strengthen bilateral connectivity. Speaking as the chief guest at the Indo-Nepal Economic Conference in New Delhi on Friday, she highlighted Nepal’s recent infrastructure developments and called for greater collaboration.

"We have inaugurated two international airports in Lumbini and Pokhara, two of Nepal’s most unique and spiritual destinations. These airports were constructed at significant cost, and we seek India’s support in making them fully operational. We encourage Indian private airlines to begin services to these airports, enhancing economic ties and deepening people-to-people connections," Dr. Rana said. She also noted that the Government of Nepal is offering various incentives to airline companies for such initiatives.

Promoting Religious and Cultural Tourism

The minister underscored the potential of religious and cultural tourism to benefit both nations. She emphasized the importance of joint promotion of initiatives like the Ramayana Circuit and Buddhist Circuit, which could contribute substantially to regional prosperity.

Invitation for Indian Investment

Calling India Nepal's largest investor, Dr. Rana encouraged Indian businesses to seize the vast investment opportunities in Nepal. "Nepal offers an investment-friendly environment, with a 'BB-' rating from Fitch Ratings, making it second only to India in South Asia. Almost every sector of the economy is open to foreign investment, with recent policy reforms enhancing the investment climate," she said.

Dr. Rana also highlighted Nepal’s readiness to establish Bilateral Investment Agreements (BIAs) with prospective countries and noted the attractive incentives, such as tax benefits, import duty waivers, export facilitation, full repatriation of income, and legal prohibitions on the nationalization of private enterprises.

Advancing Cross-Border Infrastructure and Trade

The Minister commended recent advancements in cross-border infrastructure, including rail links, petroleum pipelines, power transmission lines, roads, and motorable bridges, achieved through formal economic cooperation. She emphasized the need to address non-tariff barriers, upgrade trade infrastructure, and promote regional value chains to reduce Nepal’s trade deficit with India.

Dr. Rana highlighted a historic agreement signed in April 2022 between Indian Prime Minister Narendra Modi and Nepal’s then Prime Minister Sher Bahadur Deuba. The agreement envisions exporting 10,000 MW of power from Nepal to India within 10 years, alongside joint development of power projects, bi-directional power trade, and coordinated grid operations.

She also praised a recent tripartite power sales agreement allowing Nepal to sell 40 MW of electricity to Bangladesh via the Indian grid. "This breakthrough exemplifies the leadership and cooperation in creating a conducive environment for regional energy collaboration," she added.

Strengthening Bilateral and Regional Ties

Dr. Rana celebrated the deep cultural and economic ties between Nepal and India, lauding India’s support in areas like education, health, infrastructure, and industrialization. She expressed Nepal’s commitment to sustainable peace and rapid socio-economic development, seeking continued support from neighbors as the country aspires to graduate from its Least Developed Country (LDC) status by 2026 and achieve the Sustainable Development Goals (SDGs) by 2030.

She also stressed the importance of strengthening regional platforms such as BIMSTEC, BBIN, and SAARC to enhance economic integration and complement bilateral engagements.

In conclusion, she urged India to prioritize Nepal under its Neighborhood First policy, emphasizing that stronger economic ties based on mutual prosperity would benefit both nations.