FDI in Nepal’s Manufacturing Sector

Nepal’s manufacturing sector has been a significant focus for economic development. According to the latest reports, this sector accounts for about 29.5% of the total FDI stock in Nepal. This sector is only second to the electricity, gas, steam, and air conditioning sector, which constitutes 30.8% of the total FDI stock.

Recent data indicates that FDI pledges in the manufacturing sector amounted to Rs3 billion for 30 projects. This is a substantial commitment that reflects the growing interest of foreign investors in Nepal’s manufacturing capabilities.

The lowered FDI threshold has also attracted small investors, with the manufacturing sector receiving commitments of Rs2.83 billion for 23 projects. This policy change seems to be effective in encouraging more foreign investment into the country.

Overall, these investments are crucial for Nepal as they not only bring in financial resources but also facilitate the transfer of technology, skills, and access to global markets, which are essential for the growth and development of the domestic production industry.