Nepal secures Rs 41.79 billion FDI commitments in nine months of FY 2025/26

KATHMANDU: Nepal has received foreign direct investment (FDI) commitments worth Rs 41.79 billion in the first nine months of the current fiscal year 2025/26.

According to the Department of Industry, a total of 615 project proposals were registered during the review period.

In March-April, FDI commitments worth Rs 1.12 billion were approved for 61 industries. Of these, 49 projects were registered through the automatic route, while 12 were approved through the department’s formal process. The approved industries are expected to generate employment for 640 people.

Agriculture leads in investment, ICT tops in project numbers

Data up to the end of Chaitra shows that the agriculture and forestry sector accounted for the largest share of FDI in terms of value. The sector attracted Rs 22.08 billion, representing 53 percent of total commitments.

However, in terms of the number of projects, the information and communication technology (ICT) sector recorded the highest interest. A total of 346 projects, accounting for 56 percent of all proposals, were registered in this sector.

Similarly, the tourism sector attracted FDI commitments worth Rs 11.46 billion across 164 projects.

Small industries dominate FDI landscape

Small-scale industries continue to dominate Nepal’s FDI inflow. Of the 615 approved projects, 599 were small-scale industries, while only eight medium and eight large industries were recorded.

All 61 industries approved in Chaitra were small-scale.

Employment and repatriation

The proposed projects are expected to generate employment for 22,316 people during the review period.

Meanwhile, foreign investors were allowed to repatriate Rs 16.81 billion in dividends and Rs 4.75 billion in royalties during the nine-month period, according to the department.

The department also recommended business visas for 137 investors, 34 representatives, and 140 dependents in Chaitra alone.

However, compared to the previous fiscal year 2081/82, the number of investors receiving visa recommendations has declined slightly, the data shows.