Why foreign investors should invest in Nepal ?

Why foreign investors should invest in Nepal?

• Nepal is a landlocked Himalayan nation
• Nepal is located between India and China which are the largest and fastest growing economies in the world
• There are tremendous investment potentials in Nepal
• Nepal adopts liberal policies so it has attracted the attention of many foreign investors in different sectors

In addition to above following are the reasons to invest in Nepal

Liberal Policies

• Nepal is the first among the least developed countries to join the WTO
• It has further established its interest in economic integration through its memberships in SAARC (South Asian Association for Regional Cooperation), BIMSTEC (Bay of Bengal Initiative for Multi-Sectorial Technical and Economic Cooperation) and SAFTA (South Asian Free Trade Area)
• Ease of Doing business index is improving with respect to time
• more than 2,355 foreign investment projects worth a total of approximately USD 2.76 billion

Rich in Natural Resources

• Nepal has unique geography
• geographic diversity is favorable for finding a variety of metallic, nonmetallic, and fuel minerals
• Nearly 63 minerals have been identified in Nepal so far (2010-2011)
• The Himalayas are expected to have large reserves of limestone, talc and other industrial and construction minerals
• huge potential in the mining sector, therefore promotion of exploration and mining projects remains a top priority for the Government of Nepal
• variety of natural herbs are available being nearly 1624 different species of medical and aromatic spices
• These factors offer a large potential for revenue generation due to the increasing demand for herbal remedies worldwide in current scenario
• the potential for energy generation is also high because Nepal is rich in water resources
• estimated electricity generation potential of about 42,000 MWs
• traces of oil and natural gas have been found in various parts of the country

Location Advantage

• strategically located between India and China, two of the largest and fastest growing economies in the world
• offers unparalleled and preferential access to their markets for bilateral trade and investments
• India and China are Nepal's biggest trading partners with trade figures amounting
• there is also a huge potential for Nepal to act as a transit hub for trade between India and China
• Nepal lies at a GMT time zone of +5:45, suitable for European and American countries to have a 24-hour work schedule or for Asian countries to have a collaborative work schedule

Low Human Resource Cost

• labor costs in Nepal is low
• Labor costs are below regional and global standards and there is an abundance of labor supply
• multinational companies have already entered Nepal to take advantage of such factors