Because of many different reasons, Nepal is a promising investment location:
- The liberal economic policy of the government, which has created an investor-friendly climate.
- Favorable, legal and institutional frameworks that guarantee investment protection, dividend & capital repatriation and ensure ownership of them.
- Various incentive measures (subsidies) and locations offered to foreign investors, including tax exemptions.
- Plenty of cheap labor and market potential, both in the household sector and in the neighboring countries
- Growing infrastructure
After Nepal has taken the path of economic liberalization in the early 1990s, the Nepali government has made numerous political struggles and established an institutional support mechanism to ensure greater investment flows within the country.
The primary measures were:
- Industrial Policy, 1992
- Foreign investment policy
- Water Resources Development Policy
- Law on Industrial Enterprises, 1992 </li>
- Law on foreign investment and technology transfer, 1992
- And Company Act, 1997
Possible project areas for foreign investment:
- Agriculture and agricultural-based industries
- Textile and clothing industry
- Manufacturing industry
- Building tourism industry
- Services industry
- Mineral processing industry
- Energy development projects
- Projects according to the BOT operator model