What Are The Recent Development In Foreign Direct Investment Of Nepal?

The majority of Nepalese work abroad and send money to Nepal for investment. FDI inflows to Nepal are insufficient compared to its neighbours, but they have been steadily increasing in recent years. FDI inflows increased from USD 67 million in 2018 to USD 185 million in 2019, according to UNCTAD’s 2020 World Investment Report, owing primarily to Indian investments in hydropower projects. In 2019, the stock of FDI was projected to be USD 1.9 billion. The country’s top investors are India, China, Singapore, and Ireland.

In an open, integrated economic structure, foreign direct investment (FDI) acts as a catalyst for growth. Cross-border FDI links have been a vital feature of the financial globalisation and liberalisation process since the 1980s.

What Are The Action Taken By Government To Enhance Fdi In Nepal?

Nepal has also put a number of measures to encourage FDI, including a legal, legislative, and institutional structure. While Nepal’s FDI inflow is low in comparison to its neighbours, it has been steadily growing in recent years. In Nepal, foreign investors from 39 countries have invested in 252 businesses. In 2015/16, the FDI stock reached Rs. 137.7 billion (6.1 percent of GDP), owing to an increase in FDI-based industries’ reserves. Two-thirds of FDI stock is held in reserve. The services sector accounts for the majority of outstanding FDI in Nepal (70.2 percent). Money transfers to Nepal by foreign workers are also a major source to increase foreign revenue.

What Are The Major Resources To Invest In Nepal For Foreign Investors?

Investor planning to send money to Nepal online for investment purposes needs to research key opportunities in Nepal. According to most investment gurus, agriculture and mining will deliver the highest returns in the next 20-30 years all over the world. Food prices are expected to rise as the middle class in emerging markets expands, requiring more costly foods such as meat and more jewellery. Since global inflation will be higher than predicted, investing in precious metals rather than cash will be better.

The hydropower potential in Nepal is enormous. Although large-scale hydropower plants need a significant investment, it is possible to purchase shares of related companies when they go public. Nepal is currently working on several hydropower projects. Several of them will be made public over the next ten years. This would be an excellent opportunity for a regular investor who does not have millions of rupees to invest. A plethora of ventures await large-scale investors. In 2014, Nepal and India signed a long-awaited Power Trade Agreement, paving the way for the trade of electric power alongside other marketable commodities. Once electricity is generated, this ensures market predictability. Online money transfer to Nepal to invest in a hydropower project will never be a wrong decision for you.