New Delhi, Dec 4 (IANS): The Federation of Indian Chambers of Commerce and Industry (FICCI) Sunday said it would open an office in Kathmandu and set up an India-Nepal strategy forum to boost economic ties between the two countries.

"Confederation of Nepalese Industry (CNI), the apex business body of Nepal, has offered an office space in the Trade Tower in Kathmandu. In this regard, a memorandum of understanding (MOU) has been signed between FICCI and CNI in the presence of the minister of industries, Nepal, and Indian ambassador to Nepal," FICCI said in a statement.

FICCI said the India Nepal Strategy Forum will be co-chaired by Shiv Shankar Mukherjee, former Indian ambassador to Nepal and advisor to FICCI.

FICCI and CNI will also publish a monthly magazine on India-Nepal relations in three languages -- English, Hindi and Nepali.

These developments follow a series of conclaves on India's foreign policy organised by FICCI and the Ministry of External Affairs in Kathmandu.

Economic linkages between India and Nepal have been increasing over the years. Bilateral trade between India and Nepal has grown from $166 million in 1996 to over $2.7 billion in 2010-11.

Indian firms are the biggest investors in Nepal, accounting for about 44 percent of total approved foreign direct investment.

In October this year, the two countries signed a bilateral investment promotion and protection agreement (BIPPA).