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FDI Declined 81 Percent in Industrial Sector

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FDI Declined 81 Percent in Industrial Sector
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May 22: Foreign Direct Investment (FDI) has declined by 81.18 percent in industrial sector during the last one year. Due to the decline in investment commitment in large and medium scale industries as a result of the devastating earthquake of last year followed by Tarai unrest and the border blockade, FDI in industrial sector has declined significantly in compare to previous year.

According to the statistics of Department of Industries (DOI), foreign investment commitment of Rs 12.56 billion has been approached in large, medium and small industries during the one year from 2015 mid-May to 2016 mid-April. The foreign investment commitment was of Rs 66.78 billion in the same period of previous FY. It shows that foreign investment commitment has lessened by Rs 54.22 billion in the last year in compare to previous FY. The FDI has decreased as registration of industries was comparatively low during the last year.

During the previous FY, FDI worth Rs 58.15 billion for 14 large industries, Rs 3.75 billion for middle industries and 4.85 billion for small industries were approached. In the last period, although 10 large industries have been registered, FDI of Rs 4.77 billion has been approached. Similarly, Rs 1.75 billion FDI has been approached for 22 middle industries and Rs 6.04 billion has been approached for 314 small industries.

“Due to the year- long effect of the devastating earthquake and the border blockade, investment commitment has significantly declined,” says Rudra Bahadur Malla, Spokesperson of DOI. He believed that coming year will be stimulating in terms of foreign investment.  “Foreign investment are being facilitated and promoted through online mechanism. Additionally, planning is underway to establish separate experts’ desk with the aim of providing consulting services to foreign investors.”

According to Spokesperson Malla, DOI will finance the expenses of consultation services regarding industries and businesses provided by liberal experts. DOI informs that total of 3,535 projects have been registered under foreign investment so far.  The projects have committed to provide 212,000 employments in the country. Till date, foreign investment from 83 various countries are entering in Nepal. 

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