Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed Nepal government’s decision to process foreign investment approval services through an automated route, describing it as a positive and timely reform aimed at improving the Nepal’s investment climate.

The newly introduced automated mechanism – published in the national Gazette on 16 February 2026 – is expected to reduce procedural delays, enhance transparency, and simplify administrative processes for foreign investors seeking approval to invest in Nepal, according to a NICCI statement.

By digitising and streamlining approvals, the government has taken an important step toward aligning Nepal’s regulatory environment with global best practices and investor expectations, the statement said.

Commenting on the development, NICCI President Sunil KC welcomed the government move.

“Though the current government had the only mandate of holding an election, it has been trying to create conducive environment for business,” he said, especially thanking Industry Minister Anil Sinha, Finance Minister Rameshwore Khanal and above all Prime Minister Sushila Karki for their efforts to facilitate investment.

NICCI had organised a closed-door interaction with Industry Minister Sinha a month ago, submitted recommendations and requested the government to reform the age-old laws to facilitate the foreign direct investment.

Praising the government’s move, Co-convenor of Indian Business Forum (IBF) under NICCI Saibal Gosh noted that while automation is a significant reform, it should be seen as part of a broader, more comprehensive investment strategy.

“This is an excellent step, though this alone may not be enough to attract FDI,” he said, adding that the new government needs to come up with a benefit scheme for new FDI investors, which is aligned with investment schemes offered by different Indian states and the Central Government of India.

NICCI also emphasised that regional competition for investment has intensified, with neighbouring countries and Indian states offering targeted fiscal incentives, sector-specific benefits, and facilitation packages to attract global capital.

In this context, Nepal must complement procedural reforms with competitive incentive frameworks, policy predictability, and effective aftercare services for investors, KC added.