FDI in Nepal Increases by 11.8 Percent
September 1, 2024 | Investopaper
Nepal has received foreign investment from 58 different countries as of mid-July 2023. In terms of total FDI stock, India ranks top position with Rs.103.5 billion followed by China (Rs.35.5 billion), Ireland (Rs.22.6 billion), Australia (Rs.19.1 billion), and Singapore (Rs.18.8 billion).
The survey conducted by Nepal Rastra Bank shows that the stock of FDI in Nepal increased by 11.8 percent to Rs.295.50 billion at the end of 2022/23. Paid-up capital is the major component in FDI stock as it accounts for 52.8 percent of total FDI stock whereas the reserves and loans in total FDI stock account for 33.7 percent and 13.5 percent respectively.
About 40.2 percent of total FDI stock is in the service sector. Of which, the financial and insurance services sector constitutes 26 percent, information and communication sector 6.7 percent, and the accommodation and food services sector 6.3 percent of the total FDI stock.
Electricity, gas, steam, and air conditioning sector stands the highest with 30 percent of total FDI stock, followed by the manufacturing sector with 29.4 percent. Both are included in the industrial sector which accounts for 59.7 percent of total FDI stock.
