Invest in Modi’s HIT Sector

Invest in Modi’s HIT Sector

In a historic two-day visit to Nepal by Indian Prime Minister Narendra Modi, several key announcements were made to improve bilateral relations between the two countries. Indian premier announced opening up a concessional line of credit amounting to Nepalese Rupees (NRs) 10,000 crore ($1 billion) for development projects in the Himalayan state. He also made it clear that India would facilitate the growth of Nepal as a major exporter of herbal remedies and help realize its tourism potential.

One of his most widely hailed announcements was the proposal of a development model for Nepal called HIT where H stands for Highways, I for Infoways and T for Transways. He said that this three-pronged approach would work well for fast-paced development of Nepal and India is dedicated to work towards this goal. It also suggests that infrastructure, IT and transportation sectors can witness good growth in future and prove to be a safe bet for investors. Modi also showed an avid interest in doubling the power supply to Nepal and in completion of Pancheshwar multi-purpose project and laid stress on taking steps to try and lower call rates between India and Nepal.

Indian PM said that Nepal can help India fight off its power shortage and India would be happy to compensate for the same. It is important to note that the two sides agreed to take a decision about the Nepal India Power Trading Agreement within 45 days. To see things in the right perspective, one must remember that it was the first visit by any Indian PM to Nepal in the last 17 years and in the meanwhile, the country has undergone a complete transition from being a monarchy to democracy.

In the past few years, not much progress has been made in Indo-Nepal relations but this visit by Modi is widely seen as an icebreaker which could herald a new era for Indo-Nepal bilateral relations. The enthusiasm over the much-anticipated visit was more than evident when Nepal’s Prime Minister Sushil Koirala broke the protocol and went ahead to personally receive his Indian counterpart at the Tribhuvan International Airport in Kathmandu.

Modi was greeted with a heartwarming welcome by the Nepalese public and he also did not fail to strike a chord with everyone when he addressed the Nepal’s Constituent assembly in Nepalese language and talked about his earlier visit to the Himalayan state as a pilgrim. Indian PM went a step ahead and said that he would be open to review the 1950 India-Nepal Friendship Treaty as well to accommodate the changing needs of the people. This is especially significant in view of the fact that this treaty has received much criticism in the past from some sections in Nepal.

On the whole, political analysts are hopeful that the latest visit by Modi would give a new life to the age-old ties between India and Nepal and send a positive message to other South Asian countries as well.