Surge in Foreign Direct Investment in Nepal Reaches Rs 44.40 Arba by Jestha
Foreign Direct Investment (FDI) in Nepal has experienced a substantial increase, reaching Rs 44.40 Arba by the 11th month Jestha of the current fiscal year. This marks a significant rise of over Rs 10 Arba compared to the same period last year, which recorded Rs 34.58 Arba in FDI.
This surge in investment can be attributed to the government's efforts, including an investment summit that bolstered investor confidence and inflows. The Department of Industry (DoI) reported a total of 359 FDI proposals approved by mid-June. Notably, in the month of Jestha alone, foreign investment worth Rs 3 billion was approved.
It is projected that 20,146 jobs will be created from the FDI approved this fiscal year, with 2,323 jobs expected from the investments received in Jestha alone.
To further facilitate foreign investment, the government implemented an automatic route for FDI this year. This initiative has been highly successful, collecting Rs 11.81 Arba in FDI from mid-May to mid-June. The DoI recorded a total of 90 proposals submitted through this route by mid-June, with Rs 8.27 Arba received from 68 proposals in the last month alone.
According to the latest data, the cumulative FDI in Nepal is approaching Rs 500 Arba. As of mid-June, the DoI reported that Rs 594.36 Arba in FDI had been approved, covering 6,218 projects. These investments are expected to generate approximately 329,655 jobs.
A significant portion of the FDI has been directed towards small-scale industries. This year, 341 small industries received FDI compared to 14 medium-scale and 4 large-scale industries. From mid-May to mid-June, the government approved FDI for 51 small industries, with only one medium-scale industry receiving approval.
The tourism sector has been a major attraction for FDI, receiving nearly half of the total investments sanctioned this year. A total of 176 proposals, accounting for 49 percent of the total FDI, were approved for the tourism sector. The service sector followed with 114 proposals (32 percent), and the productive sector with 40 proposals. Additionally, the DoI approved 10 proposals in information technology, 8 in agriculture, 7 in infrastructure, 3 in mining, and 1 in energy.
