Nepal has recorded a significant increase in foreign direct investment (FDI) approvals for the fiscal year 2081/82, with the Department of Industry approving approximately NPR 64.96 billion worth of FDI. This amount reflects the total investment commitment made by foreign investors, based on which official approvals were granted.
In comparison, the previous fiscal year 2080/81 saw FDI approvals totaling NPR 61.90 billion, indicating steady growth in investor interest in Nepal.
Breakdown by Approval Routes
According to official statistics from the Department of Industry, investments were approved through two distinct routes:
- Automatic Route: Under this simplified process, 451 projects received approval, totaling NPR 4.61 billion.
- Approval Route: The traditional evaluation process approved NPR 60.35 billion worth of investments.
This mixed-route structure allows investors both flexibility and oversight, streamlining the process while maintaining regulatory standards.
Sector-Wise FDI Insights
During the fiscal year, the Department approved investments for a total of 840 projects across various sectors. Here’s a detailed sectoral breakdown:
- Information Technology (IT) topped the list by project count. With 382 projects, the sector received NPR 1.85 billion in approved FDI.
- Service-oriented industries attracted the highest value of investment. A total of 84 service sector projects received NPR 30.90 billion in approvals.
- Tourism also remained a key sector, with 304 tourism projects receiving NPR 26.82 billion in committed investment.
These figures highlight the increasing investor confidence in Nepal’s digital economy, service sectors, and tourism potential.
Investment in Other Key Sectors
The Department also approved investment in several other industries:
- Manufacturing: 55 projects approved with NPR 3.84 billion in investment.
- Agriculture: 123 projects received NPR 1.46 billion.
- Energy: A single energy project was approved with an investment of NPR 255 million.
- Infrastructure: Two projects secured NPR 50 million in investment.
- Mining: No FDI commitments were recorded in the mining sector for this period.
Despite the approvals, actual investment inflow remains lower than commitments, a trend that has persisted over recent years.
Long-Term Outlook
To date, Nepal has approved foreign investment commitments totaling nearly NPR 600 billion. However, the gap between approved FDI and actual investment realized continues to be a challenge. This gap underlines the need for improved investment facilitation, policy consistency, and infrastructure readiness to convert commitments into tangible economic growth.
