Latest Update On Nepal FDI Situation: How Much Money Did Nepal Receive From Abroad?

Nepal is seeing a rise in foreign direct investment (FDI). In the month of Jestha alone, Nepal received a total of 181 FDI investments, which is Rs. 2,295,343,280 (Rs. 2.295 arba). The majority of the investment is accounted for by the small industries with 183 investments, 3 for medium-scale industries, and 0 for large industries. This means around 98% of foreign investment projects approved in FY 2082/83 so far are small industries. This suggests that Nepal is attracting many smaller foreign investors, especially in sectors like ICT, tourism, and services.

What are FDIs?

Foreign Direct Investments (FDIs) are investments made by an individual or company that puts money into a business or industry in other countries with the aim of running, owning, partnering, or earning profit from that business.
For the fiscal year, out of 914 total projects, 894 were small industries, 11 were medium industries, and 9 were large industries with a total value of Rs. 47.61 arba.

ICT / IT Sector

ICT is the leading sector in terms of the number of projects. A total of 577 ICT projects were approved in FY 2082/83 up to Jestha. This is around 63% of all approved FDI projects.

However, the total investment commitment in ICT is only Rs. 2.36 arba. This means ICT projects are numerous but have smaller investment sizes. This is common because many IT companies need less physical infrastructure compared to manufacturing, energy, or agro-based projects.

Tourism Sector

Tourism is the second-largest sector by number of projects. A total of 202 tourism-related projects were approved, with investment commitments of Rs. 12.99 arba.
Tourism accounts for around 22% of total approved projects and around 27% of total investment commitment. This shows that Nepal’s tourism sector remains one of the strongest areas for foreign investor interest.

Agro And Forestry Sector

Agro and Forestry Sector has only 16 projects, but it has the highest investment commitment at Rs. 22.08 arba. This is around 46% of the total FDI commitment amount.
This means a small number of agro-based projects are carrying a very large share of Nepal’s total foreign investment commitment. It also shows that foreign investors may be looking at Nepal’s agriculture, forestry, and processing sectors as high-value opportunities.

Service Sector

The service sector has 62 approved projects with a commitment of Rs. 4.59 arba. This sector makes up around 7% of the total number of projects and around 10% of the total investment value.

Manufacturing Sector

Manufacturing has 52 approved projects with a commitment of Rs. 3.57 arba. Although manufacturing is important for employment and industrial growth, its share in total FDI commitment is lower than that of agro, tourism, and services.

Infrastructure Sector

Infrastructure has only one project, but the commitment amount is Rs. 1.65 arba. This shows that even a small number of infrastructure projects can carry high investment value.

Energy And Mineral Sectors

Energy Sector has 2 projects worth Rs. 23.42 crore, while the Mineral Sector has 2 projects worth Rs. 11.50 crore. These sectors currently have a very small share in the approved FDI project count and commitment amount.

Nepal’s FDI approval data for Jestha and the first 11 months of FY 2082/83 shows a mixed but important picture. The country is receiving a high number of foreign investment proposals, especially in ICT, tourism, and service sectors. However, the largest investment commitment is concentrated in agriculture and forestry.
The dominance of small industries shows that Nepal is becoming attractive for smaller foreign investors, digital businesses, and tourism-related ventures. At the same time, the high investment value in agriculture and forestry suggests potential for larger capital inflow in production-based sectors.

What does this all mean to Nepal?

FDI is important to the growth of the economy of Nepal because the country does not have enough domestic capital to build every industry, hotel, factory, technology company, energy project, or infrastructure project on its own. When foreign investors open IT companies, hotels, factories, agro-processing plants, or service businesses, they create jobs, pay taxes, and increase economic activity. It can also bring new technology, skills, and international business networks, which Nepal needs to improve productivity and compete globally. In sectors like tourism and IT, FDI can help Nepal earn foreign currency, reduce dependence on remittances, and support exports of services. Investment in agriculture, manufacturing, and infrastructure can also strengthen local production and reduce imports over time. However, the benefit depends on implementation. Approval alone is not enough. Nepal must ensure that committed projects actually start, follow rules, protect workers and the environment, and create real value for the country. If managed well, FDI can become a strong engine for jobs, growth, modernization, and innovation in the long run.

Source: Ministry of Industry, Commerce & Supply