The government has secured foreign direct investment (FDI) pledges amounting to Rs. 26.84 billion in the initial seven months of the ongoing fiscal year 2024/25. As reported by the Department of Industry, international investors have committed approximately Rs. 26.84 billion for 386 initiatives during the first seven months of the current fiscal year (spanning from July 15, 2024, to February 15, 2025). Thus far, total commitments have accumulated to Rs. 546.60 billion since the inception.
According to the Department, merely 32 industries were registered in the month of Magh (from January 14 to February 12), yielding investment pledges valued at Rs. 1.06 billion in this timeframe. In the review period of the current fiscal year, from the aggregate FDI commitment, Rs. 24.21 billion for 211 projects has been acquired through the approval method. Likewise, Rs. 2.62 billion for 175 ventures has been attracted via the automatic process during the first seven months of the fiscal year. Up to now, FDI commitments totaling Rs. 10.74 billion for 314 ventures have come through the automatic process. This approval mechanism was initiated by the government in October of the previous year.
The Nepali administration has streamlined the procedure for sanctioning foreign investments of up to Rs. 500 million through the automatic route. In the meantime, the majority of FDI is directed towards small-scale industries. Only four large enterprises and seven medium-sized ones have been registered in the first seven months of the current fiscal year. In that period, 375 small industries have gained registration. By category, the tourism sector garnered the most foreign investment interest during the review period. A total of 168 enterprises are registered in the tourism field, representing a 43 percent share of all industry registrations under FDI.
Following this is the information and communication technology sector, where 134 industries are registered, accounting for a 35 percent share of the total. Additionally, 48 industries belong to the service sector, 27 to manufacturing, and six to agriculture-related industries. Only two industries have been registered in infrastructure, with one in the energy sector during the review period. FDI-approved industries in the first seven months of the current fiscal year are projected to generate employment for 10,726 individuals.
