He also spoke about setting up a high-level investment board to clear foreign investment proposals in the minimum possible time and a grievance redressal unit that will be managed by the prime minister's office.

'My government is committed to pushing the peace process. The new constitution and the success of the peace process will begin a new era in Nepal,' he said in a bid to instill investors' confidence in the politically volatile country.

He identified roads, infrastructure, hydropower, education, health and financial services as key areas where Indian investment could make a difference.

Bilateral trade has jumped from $209.5 million in 1995-1996 to over $2 billion, but it still remains much below potential.

Nepal, however, expressed concern over widening trade deficit and underlined the need for more favorable balance of trade that will further expand economic engagement between the two neighbours.

Nepal will discuss economic issues in greater detail when he meets Finance Minister Pranab Mukherjee Thursday.