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.
