Foreign investors are thrilled, but domestic investors are disappointed.
This is a reduction from 2079–2080, the prior year. The Department of Industry reports that the total investment commitment for this year is 2 trillion 14 billion rupees.
The data indicates that foreign investment expanded quickly in 2080–2081 despite a decline in overall investment commitment. This is a department-registered investment commitment in the industry. It does not include the Investment Board's statistics.
The Department of Industries reports that 61 billion 904 million rupees worth of foreign direct investment (FDI) was granted in the previous year. which represents a 23 billion 500 million increase between 2079–2080. In that year, FDI totaling 38 billion 40 crores was approved.
This commitment to investment figure demonstrates the zeal of international investors. It does, however, indicate that local investors are not happy.
According to Rajesh Kumar Agarwal, President of the Nepal Industry Confederation, new investments have been impacted by the economy's lacklustre growth over the past three years as well as the declining confidence of local investors.
He states, "On the one hand, there are concerns about how to sustain the present industry; on the other hand, it is reasonable that there will be less new investment in this circumstance. This state of affairs won't get better unless investors have more confidence.
The Industry Department reports that there were 434 registered industries in 2080–81. Even though this is higher than the 2079–2080 rate, less money is being suggested for investment. There were 322 registered industries in that year.
In 2080–2081 there were 402 approvals for foreign investments. This figure was 327 the year before. While the number of industries registered this year has increased for both indigenous and foreign direct investment (FDI), there has been more enthusiasm for FDI than for indigenous industries in terms of the amount of investment committed.
In May of last year, the private and public sectors sponsored an investment conference. At that time, some investment commitments and FDI were inked. Over the next three months, there has been a discernible improvement in foreign direct investment.
The confidence of domestic investors hasn't improved yet, though. A study report released on Wednesday by the Confederation states that there is less demand for the current domestic sector.
The data reveals that the manufacturing industry's demand fell by 13.53 percent during the third quarter of 2080–81. The research states that the combined examination of the industrial and service industries for this year shows a 2.64 percent decline in demand.
The confederation claims that during this time the industry's revenue also declined. According to the industrialists who took part in the poll, demand has dropped by 3.87 percent from the same time last year.
There was a 1.87 percent decrease in income in the second quarter as well. 65.57 percent of all industries that took part in the study stated that they did not make any new investments in the upcoming quarter as a result of the drop in revenue and demand.
Both foreign and domestic investors favour small industries. The department reports that 333 minor industries were registered in a single year, compared to 49 major industries. 52 medium-sized industries are thought to have been registered so far this year.
Foreign investment ought to be directed towards priority regions, according to Confederation President Aggarwal. More than that, he asserts, foreign investment is required in large, productive enterprises. "Foreign investment seems to be coming even to small restaurants." The award will only be given out in accordance with the pledge at that point.
In a year, it is expected to give jobs to 25,551 individuals from registered industries. The department states that 19,565 jobs will be created by the industries that foreign investors have registered.
16,965 jobs were promised by registered industries receiving foreign direct investment last year.
In just one year, the Board of Investments has approved investments of 2 trillion 71 billion 260 million. In a single year, hydropower projects accounted for the majority of approved investments. An increase in investment has been approved for Huasin Cement.
The Investment Board stated that investments totalling 7 billion 93 billion for the Rolwaling River Hydropower Project in 2080–2081; 9 billion 30 billion for Chujung Khoja Hydropower; 9 billion 68 billion for Dana River Hydropower; 9 billion 46 billion for Saniveri Hydropower; 1 trillion 62 billion for Upper Karnali; 34 billion 59 crores for Super Tamor; and 10.8 billion for Upper Modi A have been approved.
The board reports that promises to invest 21 billion 10 million in solar energy have been made this year. Prime Minister KP Sharma Oli received the board's annual report on Thursday.
The Investment Board has approved the construction of several projects using domestic capital, including Rolwaling (7.93 billion), Chujung Khola (9.30 billion), Dana Khola (9.68 billion), Sani Bheri (9.46 billion), Super Tamor (34.59 billion), and Upper Modi (10.08 billion rupees).