Foreign direct investment (FDI) in Nepal saw a sharp rise in the month of Falgun (mid-February to mid-March). According to government data, Nepal received a total of Rs 44 billion in FDI commitments from mid-July to mid-March (Shrawan to Falgun), with Rs 17 billion committed in the last month alone.
The Department of Industry (DoI) reported that FDI commitments during the review month were made for 40 industries, including 39 small and one medium-sized enterprise. In comparison, FDI commitments during the same period last year stood at Rs 6.47 billion.
FDI commitments were significantly lower in previous months, amounting to around Rs 2 billion in Poush (mid-December to mid-January) and Rs 1.06 billion in Magh (mid-January to mid-February). Similarly, commitments stood at Rs 2.11 billion in Mangsir (mid-November to mid-December) and Rs 2.22 billion in Kartik (mid-October to mid-November).
In the current fiscal year, the tourism and information technology sectors saw the highest number of industry registrations. Of the 427 registered industries, 180 belong to the tourism sector, while 154 are related to information technology.
In terms of investment distribution, the service sector accounts for 50 percent of commitments, while tourism makes up 40 percent. The manufacturing sector represents 6 percent, while information technology and agriculture each account for 2 percent.
The surge in FDI commitments has also led to an increase in the number of business visas issued. As of mid-March in the fiscal year 2024/25, a total of 2,407 individuals were granted business visas, compared to 1,592 during the same period last year.
