Investment Opportunity in Nepal
Domestic and FDI Investment in Nepal is developing and everything is in the race of development. So, looking for an investment opportunity for a new business in Nepal. It is a very challenging and difficult task for the ones who lack boldness and courage. Investors or entrepreneurs can face uncertainty regarding the demand and competition for their goods/services. However, there are many reasons that one should seek an investment opportunity in Nepal. The prominent reason is the daily increase in the number of job seekers as well as the increase in the number of educated persons. Individuals are becoming more capable and skillful to work in various sectors. And also coming up with new innovative ideas as well. Hydropower, industrial manufacturing, services, tourism, agriculture, are some of the profitable areas for investment opportunity in Nepal.
Area of Investment in Nepal
One of the main investment sectors in Nepal is Hydroelectricity. As being one of the top nations in terms of water resources, Nepal still imports electricity from its neighboring countries. The demand and consumption of electricity are increasing at the rate of 7-9% (www.fncci.org) per each year. Moreover, Nepal is in the dire requirement to increase its energy-dependent on electricity with hydropower development. Similarly, the economy of Nepal is dominate by agriculture sector. As the country’s population is increasing, more agricultural product consume. Nepal consists of perfect topographical, geographical, and climate conditions to reap crops. Even though new agricultural technologies have developed and improved food production, there is still space for enhancement and business profitability. Even many economists and investment experts claim that agriculture will produce the best returns around the globe in the upcoming next 20-30 years. (https://nyc.nepalconsulate.gov.np/investment-in-nepal/).
Likewise, investment in tourism is also considered as a flourishing investment opportunity in Nepal. Eight out of ten highest mountain ranges in the world are situated here. The number of international tourists visiting Nepal is increasing at an exponential rate. On average, tourists who visit Nepal stay in the country for 11.78 days. With new routes, trails, and destinations is introduce. But, tourism is yet flourishing properly in Nepal. Another sector for investment opportunity is real-estate. Real-estate can provide a good return value in a couple of years. However, the location of the property is consider the single most essential factor. Which will determine the actual value of the property. Earning from renting the property is consider a good income. Nevertheless, unlike other assets, real estate is highly illiquid.
To create an domestic and FDI investment-friendly environment in Nepal, Nepal has been pursuing a liberal foreign investment policy. The country requires an annual investment of at least Rs 1,770 billion to meet sustainable development goals.(https://kathmandupost.com/money/2018/02/19/nepal-needs-rs1770b-annually-to-meet-sdgs). The country’s tax slabs are considered one of the lowest and the position is fairly good in ease of doing business. Among the South Asian Countries which is easier to work, Nepal has ranked second place after Sri Lanka. Similarly, there is also a chance of bilateral investment protection and double tax avoidance arrangements in Nepal. Therefore, Nepal is a great country for daring individuals who are looking for an investment opportunity.