Bilateral pacts to reduce cost of doing business: Nepal PM

New Delhi: Nepal Prime Minister Baburam Bhattarai today described India as a "significant economic partner" and said the proposed bilateral agreements would help in reducing the cost of doing business by entrepreneurs of the two countries.

India and Nepal are likely to sign two pacts, Double Taxation Avoidance Agreement (DTAA) and Bilateral Investment Promotion and Protection Agreement (BIPPA) during the visit of Bhattarai.

[caption id="attachment_113913" align="alignleft" width="380" caption="Baburam Bhattarai described India as a significant economic partner."][/caption]

"The new DTAA embodies modern principles for creating better investment environment and reducing cost of doing business", the visiting Prime Minister said at a function organised by industry chambers here.

"We are in the process of setting a board of investments, which is body chaired by the Prime Minister. This outfit will be a helping hand for the potential investor smoothly executing investment", he said.

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India, is the biggest source of foreign investment in Nepal as also its largest trading partner.

Bhattarai, however, said "there is serious imbalance in our trade. Nepal trade deficit with India was a staggering USD 3 billion."

During 2010-11, India and Nepal bilateral trade stood at USD 4 billion.

PTI