Nepal Receives Over Rs 36 Billion in FDI Commitments in Four Months, More Than Double Last Year’s Figure

Nepal has recorded a strong surge in foreign direct investment (FDI) commitments during the first four months of the current fiscal year 2082/83, with approvals crossing Rs 36 billion. According to the Department of Industry, a total of 382 new projects were registered by the end of Kartik — more than double the investment amount and project count recorded during the same period last fiscal year, which stood at just over Rs 19 billion.

The data highlights a renewed interest from foreign investors across multiple sectors, signaling improving investor confidence despite Nepal’s broader economic slowdown. Strong inflows during the early months of the fiscal year also suggest that certain sectors are emerging as new growth engines for FDI.

ICT Sector Leads in Project Numbers but Not in Investment Size

The Information and Communication Technology (ICT) sector recorded the largest number of new projects. Of the 382 total projects registered, 205 projects belonged to the ICT category. However, despite the high volume, the total investment commitment for ICT stood at just Rs 87.43 crore.

• ICT attracts many small-to-medium scale tech startups and service-based ventures.

• The sector is expanding rapidly in quantity but not in large-ticket capital inflows.

• Increased entrepreneurial activity suggests the sector’s long-term potential, but the absence of major high-value investments reflects an early-stage ecosystem.

Agriculture and Forest-Based Industries Attract the Highest Investment

In terms of investment volume, agriculture and forest-based industries dominated the charts. Although only 13 projects were registered under this category, the committed investment reached an impressive Rs 21.88 billion, making it the single largest contributor to total FDI this fiscal year.

• High-value projects in agro-processing, commercial farming, and forest-based industries signal a shift toward resource-based investments.

• Investors see growing potential in Nepal’s agricultural modernization and export-oriented production.

• This sector’s dominance reflects Nepal’s comparative advantage in natural resources.

Tourism Sector Also Showing Strong Foreign Investor Interest

Tourism remained another key sector attracting foreign commitments. A total of 118 tourism-related projects received approval, with foreign investment commitments amounting to Rs 8.94 billion.

• Tourism remains a strategic sector with high foreign investor confidence despite previous years’ downturns due to COVID-19 and global instability.

• Investments are likely flowing into hospitality, adventure tourism, boutique hotels, and tourism infrastructure.

• The sector’s strong recovery reflects Nepal’s long-term tourism potential and global attraction.

Other Sectors Receiving Notable FDI Commitments

The Industry Department’s breakdown shows diversified investment across several sectors:

• Service sector:
  23 industries → Rs 3.09 billion

• Manufacturing sector:
  21 industries → Rs 1.65 billion

• Infrastructure sector:
  Rs 8.74 billion

• Energy sector:
  Rs 18 million (relatively small this year)

• Mining sector:
  Around Rs 45 lakh

• Infrastructure continues to attract medium to large projects, reflecting long-term interest in Nepal’s connectivity and logistics gaps.

• Manufacturing FDI remains modest, signaling persistent structural challenges in production cost, logistics, and industrial policy.

• Energy sector commitments are surprisingly low, indicating a slowdown from the hydropower FDI boom of previous years.

• Mining remains a niche area with minimal foreign participation.

Rise in FDI Commitments in Kartik Alone

In Kartik month alone, 71 new industries were registered with FDI commitments worth Rs 1.54 billion. Although lower than the earlier months, the steady inflow demonstrates sustained foreign investor interest throughout the quarter.

• Monthly FDI commitments remain stable, indicating momentum rather than a one-time surge.

• Project registrations show Nepal is positioned to attract more foreign capital if policy stability is maintained.

The doubling of FDI commitments in the first four months of FY 2082/83 indicates a positive shift in investor sentiment and renewed interest in Nepal’s economic potential. The dominance of agriculture and tourism projects shows that Nepal's comparative advantages remain highly attractive to foreign investors. Meanwhile, the rapid rise of ICT projects signals the beginning of a digital transformation-led investment cycle.

However, analysts caution that commitments do not always translate into actual inflows. To convert these proposals into real investment, Nepal must ensure policy stability, regulatory efficiency, and infrastructure improvements.

Overall, the FDI figures offer a promising outlook for Nepal’s investment climate, provided ongoing reforms continue and structural constraints are addressed.