Suraj Vaidya was elected president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) last month. Vaidya, whose slogan was 'Change for Prosperity', talked with Nepali Times on what changes he intends to lead in the private sector.
Nepali Times: What are your priorities for FNCCI? 
Suraj Vaidya: Our first priority is to develop a private sector-driven economic agenda within six months. The agenda will be approved by the political parties and then we will work with the bureaucrats to implement it. Secondly, we want to be pro-actively involved with the government in resolving the energy crisis. Regarding labour issues, we want to partner with the trade unions and develop on the recent landmark 11-point agreement. Our focus will be to look at productivity when deciding on wages and to provide social security with flexibility. During the three years' time we want to brand Nepal as an investment opportunity, especially for our growing neighbours. The bottom line objective will be for FNCCI to be of service to our members.
How are you going to make Nepal investor-friendly with load shedding, militant unionism and extortion?
Opportunities for investment are greater because when things are tough, the government is more willing to cooperate and give incentives to investors. Our government needs to realise that we have to be more competitive than other countries in what we offer to investors. The trade unions are aware that everyday 500-1000 people migrate for employment and that the environment has to improve if they want to secure jobs.
But what sort of investment incentives can we offer when things are so bad?
The government needs to look at the kind of incentives that south Asian countries like Bangladesh, Sri Lanka and India offer in terms of tax drawbacks, excise and VAT reduction. We have to put the nation first. We have to change our focus from short-term gain to long term benefits and make the risk worth it. The budget should be a development program rather than revenue driven program.
What is the way out of this burgeoning balance of payments deficit with India?
India is growing at an enormous rate and our trade with India is large. We especially need to look at what we can export to India and focus on niche markets. Agriculture, herbal products, energy, water management are some of the areas that Nepal can be competitive in. We also have opportunities in developing the service sector for the Indian market. One area that Nepal has unique opportunity is in creating a trade route between India and China, we have to take advantage of our geographic position.
