Significant Growth in Foreign Investment: Over NPR 36 Billion Committed in the First Four Months of the Fiscal Year
Author
NEPSE TRADING

In the first four months of the current fiscal year, Nepal has seen a commitment of over NPR 36 billion in foreign direct investment (FDI). According to the Ministry of Industry's monthly report on FDI, from Shrawan to Kartik (July to October), 380 industries have received a total of NPR 36.61 billion in investment commitments.
Investment Trends via Automatic and Approved Routes
According to the Ministry, there has been a noticeable increase in foreign investment commitments through both the automatic and approved routes. A total of NPR 2.29 billion has been committed to 249 industries through the automatic route, while NPR 34.31 billion has been committed to 131 industries through the approved route.
High Investment Levels in the Month of Kartik
In October alone, NPR 43.29 million was committed to 52 industries via the automatic route, while NPR 1.04 billion was committed to 17 industries via the approved route, as reported by the Ministry.
Investment Distribution in Small, Medium, and Large Industries
A total of 374 small, medium, and large industries have received foreign investment commitments. In October, 69 small industries alone saw a commitment of NPR 1.47 billion. This indicates an increased demand for foreign investment in small industries.
Total Foreign Investment Details
Currently, the Ministry has approved a total foreign investment commitment of NPR 685.98 billion for 7,544 industries. This signals a substantial flow of foreign investment into Nepal's industrial sector.
Information Technology and Agriculture Leading Investment
From Shrawan to Kartik, the information technology sector received a commitment of NPR 87.43 million for 205 industries, while the agricultural sector saw the highest commitment of NPR 2.11 billion for 13 industries.
Investment Trends in Other Sectors
In the manufacturing sector, 21 industries received a commitment of NPR 1.65 billion, while 116 industries in the tourism sector received NPR 8.87 billion. Additionally, the service sector received NPR 3.09 billion in commitments from 23 industries.
Dividend and Royalty Outflows
From Shrawan to Kartik, foreign investors have been authorized to remit NPR 2.90 billion in dividends. This is a significant increase compared to the same period last year, when only NPR 670 million in dividends were approved for remittance.
Dividend and Royalty Remittances in Kartik
In October, foreign investors were authorized to remit NPR 87.8 million in dividends. Additionally, approval was granted for the remittance of NPR 162.14 million in royalties, including USD 16.2 million and INR 7.61 million.
The rising trend in foreign investment in Nepal is expected to continue contributing significantly to the growth of various sectors. Particularly, the information technology, agriculture, and tourism sectors stand to benefit the most. The active role of the government and the Ministry of Industry is playing a key part in driving this growth and ensuring the effective utilization of foreign investment.


