NADA Advocates For Industrial Growth in Nepal | Meeting With Minister Bhandari
26th March 2025, Kathmandu
Nepal’s industrial sector is poised for significant transformation as a high-profile delegation, led by NADA President Karan Chaudhary, met with the Honorable Minister of Industry, Commerce, and Supplies, Damodar Bhandari. The discussion focused on fostering a business-friendly environment that encourages local industries to flourish and ensures sustainable economic growth.
NADA Industrial Growth in Nepal
Key Discussions and Concerns Raised
Challenges Faced by Nepalese Freight Operators
One of the primary concerns raised during the meeting was the unrestricted entry of Indian freight vehicles into Nepal, adversely affecting local freight businesses. President Chaudhary emphasized the need for regulatory policies that protect Nepalese transport businesses from unfair competition.
Encouraging Local Production and Market Accessibility
Chaudhary stressed the importance of promoting Nepalese products by creating a favorable market environment. He pointed out that finished lubricants are being imported under the guise of lubricant industries, undermining local production. Addressing these loopholes is crucial to safeguarding domestic manufacturing industries.
Standardization in the Tire Industry
Despite the establishment of tire manufacturing plants in Nepal, the absence of standardized guidelines has hindered growth. Chaudhary suggested implementing industry standards and regulations to ensure quality production and attract foreign investments through the Build-Operate-Transfer (BOT) model.
Six-Point Proposal by NADA
To further enhance industrial development, NADA presented a six-point written proposal urging the government to:
Provide a stable policy framework for industrial growth.
Implement regulatory measures for foreign freight vehicles.
Ensure a fair market for locally produced goods.
Facilitate foreign investments through structured models.
Establish industry standards for Nepalese manufacturing sectors.
Streamline the approval process for business-related laws.
Government’s Response and Commitments
Minister Bhandari’s Assurance on Open Market Economy
Minister Bhandari highlighted that Nepal operates under an open-market economy, where profit margins can reach up to 700%. He acknowledged the lack of accurate information about Nepal’s industrial landscape in parliamentary discussions and assured necessary amendments to improve the business environment.
Fast-Tracking the Agency Registration Act
NADA Vice President Rajan Babu Shrestha raised concerns about the long-pending Agency Registration Act, which has caused difficulties for vehicle importers. Minister Bhandari pledged to expedite its approval, ensuring ease of business operations.
Reviving the Gorakhkali Rubber Industry
NADA General Secretary Surendra Kumar Upreti proposed relocating the non-operational Gorakhkali Rubber Industry to a more suitable location and transforming its current site into a Special Economic Zone (SEZ). The minister acknowledged this proposal and assured that necessary considerations.
Conclusion: A New Era for Nepal’s Industrial Sector
With the government’s commitment to creating a business-friendly environment and addressing the concerns of industry leaders, Nepal’s industrial sector is set for growth. The collaborative approach between policymakers and business leaders will drive sustainable economic development, fostering a robust industrial ecosystem in Nepal.
The meeting was attended by Commerce Secretary Govinda Karki, Industry Secretary Krishna Bahadur Rawat, Private Secretary Suman Dhital, and Personal Secretary Anand Prasad Bhatt. Representing NADA were Secretary Vikram Singhania, Assistant Treasurer Pankaj Agrawal, and Association Secretary Surendra Pradhan.
For more: NADA Industrial Growth in Nepal
