Nepal foreign investment: India leads as top investor among 60 countries

Nepal is becoming an attractive destination for foreign investors. The country receives foreign direct investment (FDI) from around 60 countries, with India emerging as the largest contributor.

India holds 32.3% of Nepal’s total FDI stock, which equals approximately NRs 107.63 billion. Other countries also invest, though their shares are smaller. China follows with 10.2%, Singapore with 8.3%, Ireland with 6.9%, and South Korea with 6.1%.

In the fiscal year 2023/24, Nepal’s total FDI stock reached NRs 333 billion, marking a 12.7% increase compared to the previous year. The investment is split into paid-up capital (50.7%), reserves (36.7%), and loans (12.6%).

The industrial sector attracts the most FDI, accounting for 59.4% of the total, while the service sector makes up 40.5%. Within the industrial sector, the electricity, gas, steam, and air conditioning sector holds the largest share at 29.5%, closely followed by manufacturing at 29.3%.

Experts say that maintaining a stable environment and offering better facilities will be essential for Nepal to attract even more foreign investors in the future.