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Nepal

Nepal, a landlocked state bordered by China and India – two of the world’s fastest growing economies – is home to an agriculture, services, and manufacturing dominated economy. Since the 1950s the Nepalese government has taken great efforts toward liberalizing the state’s economy and sustaining economic growth, with great success.

Of the quickest moving industries in Nepal, the energy industry is growing growth potential by that day especially hydroelectricity. The government of Nepal strives to continue to build upon and solidify its infrastructures further through such energy project and other such privatized industries; as such, Nepal is rife with opportunity for investment in public works. Since 2010 Nepal’s Industrial Policy has emphasized a focus on economic diplomacy, as well as improving product development by giving customs breaks to investors seeking to import materials for manufacture in Nepal.

The state has also emphasized the need to increase industrial product exports, while mobilizing local sources, raw materials, skills and tools, as well as foreign investment. Nepal’s export-oriented economy is therefore highly attractive for foreign investors seeking to outsource manufacturing to Nepal. This is evidenced by the 1.243 trillion USD of foreign direct investment (FDI) inflows to Nepal, according to the World Investment Report of 2011. All in all, Nepal’s skilled labor force, and internationally competitive wages make it a truly ideal location both manufacturing, as well as a variety of highly diversified investment opportunities, which the government of Nepal has been keen to accommodate, with its increasingly liberalized market economy.

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