Kathmandu: Nepal approved foreign direct investment (FDI) commitments worth Rs 58 billion during the fiscal year 2025/26, with more than 1,100 projects receiving approval, according to the Department of Industry (DoI).
Official data show that the department approved 1,116 foreign investment projects over the review period through both the automatic and regular approval mechanisms.
Of the total, 897 projects with combined investment commitments of Rs 9.58 billion were approved through the automatic approval route, a system designed to simplify and accelerate investment procedures. The remaining 219 projects, accounting for Rs 48 billion in proposed investment, received approval through the department’s regular approval process.
Agriculture Leads FDI Commitments
The agriculture sector emerged as the largest recipient of foreign investment commitments during the fiscal year, attracting Rs 23 billion across 18 projects.
The tourism sector ranked second, securing Rs 13 billion in FDI commitments for 227 projects, reflecting continued investor interest in Nepal’s hospitality and tourism industries.
The energy sector received investment commitments totaling Rs 7 billion for four hydropower and energy-related projects, highlighting sustained foreign interest in Nepal’s renewable energy potential.
Manufacturing and IT Also Attract Investment
The manufacturing sector attracted Rs 3 billion in foreign investment commitments for 63 projects, while the rapidly expanding information technology (IT) sector secured Rs 2.83 billion across 727 projects.
Although the IT sector accounted for the highest number of approved projects, most were relatively small in investment size compared to projects in agriculture, tourism, and energy.
Investment Climate Improving
The latest figures indicate continued foreign investor interest across a broad range of sectors despite global economic uncertainties. The government’s expansion of the automatic approval system has also contributed to faster processing of smaller investment proposals, while larger projects continue to be evaluated through the standard approval mechanism.
The Department of Industry expects ongoing regulatory reforms and improvements in the investment environment to further enhance Nepal’s ability to attract foreign capital in priority sectors, including agriculture, tourism, manufacturing, renewable energy, and information technology.
