Perfect time to invest in Nepal

The business opportunity in Nepal has been underestimated for far too long. Enmeshed in political revolution for nearly two decades, investing in Nepal was definitely a risky proposition. However, as the political agenda has correctly shifted towards economic growth, with a stable government, Nepal has become the perfect place to invest.

Achieving GDP growth of 7.5% in 2017, the signs of a revitalized economy have already been felt. In recent years, there have been notable improvements by the government in removing crippling power cuts and crafting investment-friendly bills. The dramatic increase in foreign direct investment in Nepal is a clear sign that it is time to capitalize on the economic boom in the here and now.

The hydroelectric power, tourism and cement industries are driving. The services sector and small and medium-sized enterprises are not far behind in benefiting from the rapid growth of business activity in the country, which has been paralleled by the development of infrastructure. The entrepreneurial movement has accelerated and young entrepreneurs with great visions are emerging in Nepal whose contribution can be directly felt in all sectors. With the great potential and cheap labor, the return on investment in this unsaturated market would definitely be higher than investing in any saturated market.

WHY 2018?

Political Consensus

After two decades of political instability, the Central Government was formed with a majority and promised to promote investment and economic activities

All political parties incorporate economic issues as their main agenda

Stable province and energetic local government focused and dedicated to improving people’s livelihoods.

Regional Presence

Nepal recently signed a Memorandum of Understanding (MOU) on the framework agreement on China’s One Belt One Road Initiative (OBOR)

Government of Nepal Committed to improving connectivity with both neighboring countries by road and rail

As a member of the South Asia Free Trade Area (SAFTA) and the Bay of Bengal Initiative for Multi-Sector Technical and Economic Cooperation (BIMSTEC) Free Trade Agreement, you enjoy a tax and duty free experience.

The ease of doing business

Nepal was ranked third after Bhutan and India among South Asian countries in the World Bank’s ‘Ease of Doing Business Report 2017’.

Nepal has recently revised its law and regulations to make it more investment friendly and is in the process of continuous improvement.

In most sectors, 100% ownership is allowed for foreign investors.

Investments under the Bilateral Investment Promotion and Protection Agreement (BIPPA) signed with Finland, India, Germany, Mauritius, Qatar, UK and France mean a friendlier investment opportunity.

Agreement to Avoid Double Taxation signed with Austria, China, India, Korea, Mauritius, Norway, Pakistan, Qatar, Sri Lanka and Thailand.

Location and geographic convenience

Nepal is located between two of the largest economies in the world known for their very fast economic growth: India and China.

It has access to the market of approximately 2,700 million inhabitants.

Open border and duty-free trade with India and duty-free access to China for more than 8,000 products.

capable human resources

Government initiation to improve the technical skill and competence of the labor force required for rapid economic development

Of the 28 million inhabitants, 61% are active population.

The female population share is comparatively high among South Asian countries.

Labor cost is low.

Where to invest?

has. hydroelectricity

Being the second richest country in hydroelectric potential, Nepal has a great future in this sector. Supported by its geographical inclination, Nepal has a large number of steep and eternal rivers; the development of massive hydroelectric projects is a possibility. Since Nepal is a developing nation with a shortage of funds, the resources have not been used to their full potential. Also, India, the neighbor to the south, will always have a demand for clean and cheap electricity, so there is always a market for hydroelectric projects in Nepal. With more than six thousand perennial rivers, large and small, flowing throughout Nepal, including the three main rivers Koshi, Gandaki and Karnali, there is a huge business opportunity in hydropower in Nepal.

b. Transportation

Nepal is a landlocked country with topographical diversity that obviously makes transportation difficult. Therefore, the need for adequate transportation facilities is acute. There is a need for different transportation, such as cable transportation, railway, water transportation, etc. As a result of geographic diversity, there is a lack of roads throughout the country, and even roads in urban areas are in poor condition and need expansion; therefore, developing better roads and investing in new road projects are a priority for the government, making this a good company to invest in. The availability of a large mountain range benefits cable transportation projects. Additionally, the railroads could have great potential to replace other transportation facilities in the southern plains. The existence of a single international airport is a big problem and, therefore, a great business opportunity. Transport projects that have big budgets are the perfect sector to invest in Nepal.

against agriculture

The agricultural sector, which is the largest contributor to the country’s GDP, is the factor that dominates the economy. Until the 1980s, most people relied on agriculture for their livelihood, however, a smaller number of the population relies on agriculture for their livelihood. Agriculture as a business is still not seen as a profitable enterprise by a large segment of the population.

Nepal is geographically and topographically suitable for agriculture and with perfect climatic conditions. This is also a positive factor for growing and harvesting rare medicinal herbs. New technologies that contribute to agriculture are very rare, which makes the chances of introducing them a great investment opportunity in Nepal. Producing cash crops as a business idea could be a profitable business as commercial farming projects are not big yet in Nepal.

d. Tourism

With a diverse geographical condition, a very rich and divergent culture, Nepal attracts a magnificent number of tourists who make tourism a leading economy. Eight of the ten highest peaks in the world and various other mountain ranges inhabit the country, making it a hub for mountaineers, climbers, hikers and others seeking adventure. Nepal is the birthplace of the Buddha and home to many Hindu and Buddhist shrines, which attract a large number of pilgrimages each year. Temples and monuments dating back to history and having great archaeological importance, are also annually welcomed by many archaeologists. The number of tourists entering Nepal is increasing at an exponential rate, with foreign tourists staying in the country for an average of 11.78 days. The unique flora and fauna is another reason for the possible growth of tourism. Every year a new attraction, a new desert and a new adventure unfold in one of the remote areas of Nepal. The country has a large number of qualified porters and guides who could be hired for a very low salary. All these factors make tourism perhaps the best sector to invest in Nepal.

me. Infrastructure

Infrastructure development is one of the vital needs of Nepal. Due to the great earthquake of 2015, there were devastating losses in the main areas of the Kathmandu valley and other areas, which necessitated the dire need to create earthquake-proof infrastructure. Since transportation facilities are in serious need of improvement, this could also be a sector to invest in. The Nepalese government has always been supportive of investors trying to work in the infrastructure sector.

F. Information technologies

The IT field has dominated the world at the moment and Nepal is no exception. Nepal has a large number of qualified IT graduates who could be hired at very low wages. As it is an upcoming interest on the Nepalese stage, new talents and ideas could surely be explored. IT companies emerging as a new commercial company; the competition is less if you decide to invest right now.

gram. Mines and Minerals

Nepal is located in the central part of the Himalayan Belt, which makes it very rich in minerals. The Himalayan region consists of groups of metallic and non-metallic minerals. Nepal is also known for exporting a variety of beautiful decorative stones. Even with the presence of large amounts of minerals scattered throughout the Himalayas, Nepal itself has not been able to extract these minerals. Existing mineral extraction businesses are fewer in number and ineffective. There are ample opportunities for investors who could invest in cement factories, lime extraction, coal, magnetization, talcum clay, etc. So if anyone decides to invest in this sector, this could be a very profitable business in Nepal.

H. Health education

The health sector is in a very bad state in Nepal. It needs a lot of improvisation and improvement. Therefore, it would be very profitable for someone who is interested in investing in Nepal in this sector. Also, the education sector is largely lagging behind. Many students go abroad each year in search of a quality education. These should be good reasons to invest in Nepal.

I. Telecommunications

With the increase in population and the growth of business and technology, telecommunications are a pressing need. There are only a few telecom companies in Nepal and therefore less competition. The geographical conditions of the country are challenging, even the existing networks have not reached the remote areas. This creates a great opportunity for anyone who wants to build a profitable business in Nepal.

Nepal is moving towards a liberal foreign investment policy and aims to create an investment-friendly environment to attract foreign investment in the nation. The Nepalese government strongly encourages foreign investment, either as joint ventures with Nepalese investors or as 100 percent foreign-owned companies. With comparatively lower taxes and ease of doing business, Nepal is one of the most mature investment destinations for both Nepalese and foreign investors.