Rs. 27 billion FDI received in first seven months of current fiscal

By A Staff Reporter,Kathmandu, Feb. 25: The government has received foreign direct investment (FDI) commitments worth Rs. 26.84 billion during the first seven months of the current fiscal year 2024/25.

According to the report of Department of Industry, foreign investors have made their commitment to invest around Rs. 26.84 billion for 386 projects during the first seven months of the current fiscal year (from July 15, 2024 to February 15, 2025) of the current fiscal year.

Along with this, such commitment so far has reached Rs. 546.60 billion from the beginning.

According to the Department, only 32 industries were registered in the month of Magh (from January 14 to February 12) and investment commitments worth Rs. 1.06 billion was received in this month. 

During the review period of the current fiscal year, out of total FDI commitment, the FDI commitment of Rs. 24.21 billion for 211 projects has been received through the approval route during the review period.

Similarly, Rs. 2.62 billion for 175 industries has been received through the automatic route during the first seven months of the current fiscal year.

So far, FDI commitment worth Rs. 10.74 billion for 314 industries has come through the automatic route. The government started to approve investment through this method since October last year.

The government of Nepal streamlined the process for approving foreign investments of up to Rs. 500 million through the automatic route.

Meanwhile, most of the FDI is focused on small industries. Only four large industries have been registered with seven medium-size ones in the first seven months of the current fiscal year. 

During the first seven months of the current fiscal year, 375 small-scale industries have been registered. Category-wise, most attraction of foreign investment is seen in tourism sector during the review period. 

A total of 168 industries have been registered in tourism sector. This accounts for 43 per cent share of the total number of industry registration under FDI. 

The second place goes to the information and communication technology sector where 134 industries are registered. This is 35 per cent share of the total number. 

Similarly, 48 industries are registered in service, 27 industries in manufacturing and six in agriculture related industries.

During the review period, only two industries have been registered in infrastructure and one in energy sector.

FDI approved industries during the first seven months of the current fiscal year have made their commitment to provide jobs to 10,726 people.