FDI increases even during pandemic

Kathmandu: Amid the Covid-19 pandemic, foreign investors are excited to open new industries in Nepal. Although covid-19 cases are increasing significantly in the country, the processes of registering new industries with foreign investment seems to be normal at present.
A total of 89 industries with foreign investment have been registered in the first three months of the current Fiscal Year 2020/21. According to the Department of Industry, foreign investment worth of Rs 19.15 billion has been committed in those industries registered till mid-October.
This amount is only about Rs 100 million less than last year and only one less than the number of industries. During the same period in previous fiscal year, a total of 88 industries were registered worth Rs 19.25 billion.
Economists say that even in the midst of the Corona epidemic, the return of foreign investment to normal is a positive sign for the country’s economy.
Binod Kumar Khadka, information officer of the industry department, said that investors have been more attracted towards the hydropower and tourism sectors recently. He said that even after the investment conference, there is continuous contact with the investors and the foreign investment commitment is continuing even among the co-operatives.
The highest foreign investment commitment has been made in the tourism sector in the last three months. A total of 58 new industries have been registered in this sector with an investment of Rs 13.80 billion. The department has stated that 1,592 people will get employment after the operation of these industries.
Similarly, foreign investors have committed for 25 new industries in the service sector. A total investment of Rs 4.5 billion has been committed in this sector. After the operation of these industries, 1,034 people will get employment.
Agriculture, technology and manufacturing sectors, on the other hand, have relatively low investment commitments. The lowest commitment is in the agricultural sector. There is an investment proposal for only one industry in the agricultural sector. An investment commitment of Rs. 350 million has been made in agriculture.
Similarly, two new industries have been registered in the manufacturing sector. A total of Rs. 200 million investment commitment has been made for these industries. After the operation of the industry, 45 people will get employment. Investment commitment has been made for three new industries in the information technology sector. Rs 300 million investment commitment has been made for three industries.
The highest investment commitment in the current fiscal year has come from China. China has committed to invest in 83 industries. An investment commitment of Rs. 15.85 billion has been made for 83 new industries.
An investment proposal has come from India and the UK to operate 2/2 new industries. Investment commitments have come from Mexico and the Virgin Islands to operate 1/1 new industries. India has committed Rs 150 million for the operation of two new industries. The UK has committed Rs 100 million for two industries.
Mexico has pledged Rs 500 million to run an industry, while Virgin Islands has pledged three billion.