JANAKPURDHAM: The Madhes Province government has moved forward with plans to organize an investment summit to boost economic activities and increase the province’s contribution to the national gross domestic product (GDP), which currently stands at around 13 percent.
The provincial government has prioritized expanding economic activities, increasing production, and encouraging private sector investment to unlock the province’s economic potential. Despite having abundant natural resources, fertile agricultural land, a large labour force, and opportunities for cross-border trade, Madhes Province has yet to fully harness its economic prospects.
Considering this, the government has introduced programmes focused on expanding productive sectors, promoting industrialization, and attracting investment.
Jaya Kumar Ghimire, secretary at the Ministry of Industry, Commerce and Tourism of Madhes Province, said special emphasis has been placed on tourism promotion alongside the expansion of productive sectors to increase the province’s share in the national economy.
“We have given priority to promoting investment in the industrial, trade, and service sectors of the province,” he said, adding that although a budget was allocated to organize an investment summit in fiscal year 2082/83, it could not be held due to various reasons.
He said the province cannot achieve economic growth without adequate investment in industries and businesses. Therefore, the government has planned to organize an investment summit in the current fiscal year 2083/84.
Ghimire further said programmes would be launched to identify and upgrade tourism destinations to attract more visitors. The provincial government has also prioritized the development of industrial infrastructure, establishment of industries based on agricultural products, promotion of small and medium enterprises, management of cross-border trade, and providing administrative facilitation to investors.
According to Ghimire, modernization of agriculture, expansion of irrigation facilities, development of industrial villages and industrial zones, tourism promotion, creation of an investment-friendly legal environment, and partnerships with the private sector are essential to stimulate economic activities.
Former vice-chairperson of the Madhes Provincial Policy and Planning Commission, Dr. Bhogendra Jha, said initiatives such as an investment summit could help create a favourable investment climate in the province. He stressed that investment commitments should not remain limited to documents but must be translated into implementation.
Jha also emphasized the need to simplify legal and administrative procedures for industrial operations and maintain regular dialogue with the private sector. He said expansion of production, industry, trade, and service sectors would naturally increase the economic size of the province.
A report on economic activities of Madhes Province unveiled by Nepal Rastra Bank last October estimated Nepal’s GDP at consumer prices at Rs 6.1 trillion in fiscal year 2081/82, while Madhes Province’s GDP was estimated at Rs 804 billion. During the same period, the national economy was projected to grow by 3.99 percent, while Madhes Province’s economic growth was estimated at 3.88 percent.
Madhes Province has fertile agricultural land, particularly suitable for paddy production. The province also has significant potential in milk, egg, fish, fruit, and vegetable production.
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