What Is The Significance Of Foreign Direct Investment In The Country?

For Foreign Direct Investment (FDI), investors send money to Nepal that is usually thought to have a favourable impact on the economy. Foreign investment is any investment that flows from one country to another. As a result, foreign investment is “encouraged” since it “complements and supports indigenous investments in emerging countries’ capital-scarce economies.”

One of the essential aspects of the country’s development has been FDI. FDI makes a considerable contribution to economic growth in underdeveloped countries. The impact of foreign direct investment (FDI) on developing nations has been widely established as an important aspect of modernization, economic growth, and industrial development.

What Are The Lack Points In The Policy And Regulation Of Foreign Direct Development Of Nepal?

Nepal has been pursuing a liberal investment policy in order to attract FDI since the 1990s, recognizing the importance of FDI for economic development. The Government of Nepal (GON) has taken steps in this direction by making reforms to its laws and regulations, as well as establishing a one-window system at the highest level under the Nepal Investment Board to provide vital services to potential investors. Nonetheless, the country has a number of issues in the FDI sector, mostly due to a lack of transparency, random project selection, lack of the latest service for money transfer to Nepal, and a disregard for potential economic repercussions.

What Are The Plus Points In Nepal For Foreign Direct Investments?

Online money transfers to Nepal are increasing every year. Foreign investors have made praiseworthy investments in a variety of industries, including hydropower, industrial, manufacturing, service, tourism, construction, agriculture, minerals, and energy, which have generated revenue and job possibilities. Apart from its ecological and meteorological advantages over its neighbours, India and China, the country’s location in the Himalayan foothills is a draw. The country’s environment ranges from virtually sea level in the Terai area to Mount Everest, the world’s highest mountain. As a result, the government has a wide range of climates within a short radius of 193 kilometres from south to north, providing great prospects for investment in a variety of areas such as herbal and organic farming.

Furthermore, the country’s labour supply is secure, as evidenced by the fact that the majority of the population is young and very inexpensive by international standards. Until the outbreak of Covid-19, roughly 1,200 to 1,500 young people left the country every day for work in the Gulf, in addition to those who went to India for the same reason. These workers send money to Nepal online to support household back in their home country.