Foreign direct investment (FDI) plays an important role in industrialization by bringing capital, technology and skills. FDI can accelerate industrial growth, promote job creation and infrastructure development. Nepal faces challenges to attracting more FDI such as poor infrastructure and political instability. However, opportunities exist in sectors like renewable energy, tourism, manufacturing and infrastructure. The government is working to improve policies and ease of doing business to promote sustainable industrialization through increased FDI inflows.
Growth and Development of FDI on Indian EconomyIJMER
India has been attracting substantial of foreign direct investment since last few decades,
highly in services sector, telecommunications, software products, real estate etc. FDI are highly
promoting manufacturing sector of India’s exports & attracting more number of earnings on Foreign
exchange, Institutional Investments, MNCs and speeding up our economic growth through Technology
transfer, Employment generation and improved access to managerial expertise, global capital, product
markets and distribution network. FDI bring out the generation-wise innovation, hidden technology,
spending more on research & development to retain our strength in the globalised competitor
products. Indian economy is going to over track the developed and developing countries. Recently, due
to the recession most of the countries have not able to run their investment as well, but India has been
managed better then developed country without elevated struggling. This paper analyzes the growth
and development of FDI and it discussed the Indian economic growth through FDI. In addition it
explains and showed the various sector-wise FDI performances in India
Growth and Development of FDI on Indian EconomyIJMER
India has been attracting substantial of foreign direct investment since last few decades,
highly in services sector, telecommunications, software products, real estate etc. FDI are highly
promoting manufacturing sector of India’s exports & attracting more number of earnings on Foreign
exchange, Institutional Investments, MNCs and speeding up our economic growth through Technology
transfer, Employment generation and improved access to managerial expertise, global capital, product
markets and distribution network. FDI bring out the generation-wise innovation, hidden technology,
spending more on research & development to retain our strength in the globalised competitor
products. Indian economy is going to over track the developed and developing countries. Recently, due
to the recession most of the countries have not able to run their investment as well, but India has been
managed better then developed country without elevated struggling. This paper analyzes the growth
and development of FDI and it discussed the Indian economic growth through FDI. In addition it
explains and showed the various sector-wise FDI performances in India
Bangladesh can learn strategy of fdi from chinaM S Siddiqui
There is no reason why Bangladesh will continue keep these sector restricted for public investment with overseas loan against high interest rate. The relevant government departments are proven to be most corrupt and inefficient. The cost of construction is reportedly highest in the world as revealed by different study and comparison with other countries. These sectors may be opened for FDI following the policy of China.
This Guide to the Board of Investment was prepared by the Office of the Board of Investment to provide basic information on BOI investment promotion for applications submitted from January 1, 2015, onward. This guidebook comprises investment promotion incentives and privileges, the list of activities eligible for investment promotion and related announcements including essential rules and criteria for applying investment promotion.
This Guide to the Board of Investment was prepared by the Office of the Board of Investment to provide basic information on BOI investment promotion for applications submitted from January 1, 2015, onward. This guidebook comprises investment promotion incentives and privileges, the list of activities eligible for investment promotion and related announcements including essential rules and criteria for applying investment promotion.
India australia business report singhania & partners mar 2016Singhania2015
• India and Australia, popularly connected by 3C’s i.e. Curry, Commonwealth and Cricket, were ruled by British and inherited parliamentary system of governance. Both the countries have several commonalities, which serve as a foundation for closer cooperation and multi-faceted interaction, on lines similar to what India has developed with other western countries. Both countries are members of regional organizations including the Indian Ocean Rim Association for Regional Cooperation and ASEAN Regional forum. The relationship has grown in strength and importance since India’s economic reforms in the nineties and has made rapid strides in all areas - trade, energy, mining, science & technology, information technology, education and defence .
India and Australia, popularly connected by 3C’s i.e. Curry, Commonwealth and Cricket, were ruled by British and inherited parliamentary system of governance. Both the countries have several commonalities, which serve as a foundation for closer cooperation and multi-faceted interaction, on lines similar to what India has developed with other western countries. Both countries are members of regional organizations including the Indian Ocean Rim Association for Regional Cooperation and ASEAN Regional forum. The relationship has grown in strength and importance since India’s economic reforms in the nineties and has made rapid strides in all areas - trade, energy, mining, science & technology, information technology, education and defence
Foreign Direct Investment. Political Economic Digest Series - XVIAkash Shrestha
In this issue, we will be discussing about Foreign Direct Investment (FDI).
Foreign Direct Investment has been a very productive tool for the economic growth of many countries. Recently after the government made the decision to celebrate 2012/13 as investment year and after the agreement with India i.e. Bilateral Investment Promotion and Protection Agreement, the topic of Foreign Direct Investment has been highly discussed among the lawmakers, policymakers and general public. The examples provided in this issue of different countries regarding FDI has shown how the growth rate is positively affected by the investment from outside the country.
Bangladesh can learn strategy of fdi from chinaM S Siddiqui
There is no reason why Bangladesh will continue keep these sector restricted for public investment with overseas loan against high interest rate. The relevant government departments are proven to be most corrupt and inefficient. The cost of construction is reportedly highest in the world as revealed by different study and comparison with other countries. These sectors may be opened for FDI following the policy of China.
This Guide to the Board of Investment was prepared by the Office of the Board of Investment to provide basic information on BOI investment promotion for applications submitted from January 1, 2015, onward. This guidebook comprises investment promotion incentives and privileges, the list of activities eligible for investment promotion and related announcements including essential rules and criteria for applying investment promotion.
This Guide to the Board of Investment was prepared by the Office of the Board of Investment to provide basic information on BOI investment promotion for applications submitted from January 1, 2015, onward. This guidebook comprises investment promotion incentives and privileges, the list of activities eligible for investment promotion and related announcements including essential rules and criteria for applying investment promotion.
India australia business report singhania & partners mar 2016Singhania2015
• India and Australia, popularly connected by 3C’s i.e. Curry, Commonwealth and Cricket, were ruled by British and inherited parliamentary system of governance. Both the countries have several commonalities, which serve as a foundation for closer cooperation and multi-faceted interaction, on lines similar to what India has developed with other western countries. Both countries are members of regional organizations including the Indian Ocean Rim Association for Regional Cooperation and ASEAN Regional forum. The relationship has grown in strength and importance since India’s economic reforms in the nineties and has made rapid strides in all areas - trade, energy, mining, science & technology, information technology, education and defence .
India and Australia, popularly connected by 3C’s i.e. Curry, Commonwealth and Cricket, were ruled by British and inherited parliamentary system of governance. Both the countries have several commonalities, which serve as a foundation for closer cooperation and multi-faceted interaction, on lines similar to what India has developed with other western countries. Both countries are members of regional organizations including the Indian Ocean Rim Association for Regional Cooperation and ASEAN Regional forum. The relationship has grown in strength and importance since India’s economic reforms in the nineties and has made rapid strides in all areas - trade, energy, mining, science & technology, information technology, education and defence
Foreign Direct Investment. Political Economic Digest Series - XVIAkash Shrestha
In this issue, we will be discussing about Foreign Direct Investment (FDI).
Foreign Direct Investment has been a very productive tool for the economic growth of many countries. Recently after the government made the decision to celebrate 2012/13 as investment year and after the agreement with India i.e. Bilateral Investment Promotion and Protection Agreement, the topic of Foreign Direct Investment has been highly discussed among the lawmakers, policymakers and general public. The examples provided in this issue of different countries regarding FDI has shown how the growth rate is positively affected by the investment from outside the country.
Welcome to the Program Your Destiny course. In this course, we will be learning the technology of personal transformation, neuroassociative conditioning (NAC) as pioneered by Tony Robbins. NAC is used to deprogram negative neuroassociations that are causing approach avoidance and instead reprogram yourself with positive neuroassociations that lead to being approach automatic. In doing so, you change your destiny, moving towards unlocking the hypersocial self within, the true self free from fear and operating from a place of personal power and love.
2. FDI, most important channels of direct investment between countries
FDI ,The investment made by a company from one
country into a business entity located in another
country, involving ownership and control of the
business.
8/3/2023 FDI 2
Introduction
3. The main factors that affect foreign direct
investment are:
1. Infrastructure and access to raw materials
2. Communication and transport links.
3. Skills and wage costs of labour.
8/3/2023 FDI 3
Introduction
AN INVESTMENT BECOMES FOREIN
INVESTMENT WHEN
Investment done by citizens and
government of one country (home)invest
in industries of another country (host)
5. Types of Foreign Direct Investment
8/3/2023 FDI 5
Horizontal FDI Vertical FDI Conglomerate FDI Platform FDI
When a Foreign
Company establishes
the same type of
business operation in a
foreign country as it
operates in its home
country.
When a business
acquires a
complementary
business in another
country.
When a company
invests in a foreign
business that is
unrelated to its core
business.
When a Company
invest to build a
base in a second
country in order to
export to a third
country.
A U.S.-based
cellphone provider
buying a chain of
phone stores in
China
McDonald’s
purchases a large
scale meat
processing plant in a
European country to
boost its meat
supply chain in the
target country.
US retailer
Walmar’t invests in
TATA motors, Indian
automobile
manufacturer.
Nike creating its
manufacturing base
in Pakistan in order
to produce shoes to
be exported across
the world.
6. Motives for foreign direct investment
8/3/2023 FDI 6
The motives for foreign
investment vary
depending on the industry,
company size, market
conditions, and individual
company objectives.
7. Foreign investment scenario in Nepal
Foreign investment in Nepal has been limited due to challenging political and economic conditions,
but the government has made efforts to attract foreign investment and create a business-friendly
environment.
Sectors such as hydropower, tourism, hospitality, and manufacturing are particularly open to foreign
investment in Nepal.
Challenges to foreign investment in Nepal include infrastructure limitations, a shortage of skilled
labor, and a complex regulatory environment.
Nepal offers advantages such as a low cost of living, relative political stability, and its strategic
location between India and China.
Success in Nepal requires navigating challenges and a long-term commitment to the country's
development.
8/3/2023 FDI 7
8. Foreign investment scenario in Nepal
8/3/2023 FDI 8
Nepal's FDI increased by
14.2 USD mn in Apr 2023,
compared to 5.1 USD mn in
the previous quarter.
FDI data is available from
Oct 2000 to Apr 2023,
reaching a high of 80.1 USD
mn in Jan 2018 and a low of
-6.0 USD mn in Apr 2006.
Key information about Nepal Foreign Direct Investment
Sources- Nepal FDI , CEIC Data
9. Foreign investment scenario in Nepal
8/3/2023 FDI 9
Table 1:FDI by Country Table 2:FDI by Major Sectors
Sources: Survey Report on FDI in Nepal 2021/2022, NRB Economic Research Department
10. FDI policies and regulations in Nepal
Nepal has initiated institutional and legal reforms in recent decades with the aim of promoting FDI to
complement the resource gap in capital formation. Gradual liberalization of FDI inflows in various
sectors has been encouraged by creating investment friendly environment and prioritizing foreign
investment related reforms. Some of them include
a) Foreign Investment Policy, 2015
b) Foreign Investment and Transfer of Technology Act, 2019 (FITTA)
c) Public-Private Partnership and Investment Act, 2019
d) Industrial Enterprises Act, 2020
e) Institutional reforms such as establishment of One Stop Service Center to facilitate foreign
investment
f) Nepal Rastra Bank Foreign Investment and Foreign Loan Management bylaw, 2021
8/3/2023 FDI 10
11. Major Bodies Related to FDI in Nepal
SN Agencies Major Functions
a.
Ministry of Industry, Commerce and
Supplies
Formulate of policies and laws
b. Industry and Investment Promotion Board
Provide consent to industries that require
permission
c. Investment Board of Nepal
Approve the foreign investment exceeding
NRs. 6 billion and provide other facilitation
d.
Department of Industry (One Stop Service
Center)
Approve the foreign investment not
exceeding NRs. 6 billion and provide
industry administration related services
e. Office of Company Registrar
Register company and provide
administration related services
f. Nepal Rastra Bank
Provide approval for bringing in foreign
currency against approved investment,
recording and repatriation
8/3/2023 FDI 11
Sources:Ministry of industry commerce and supplies, Department of industry, https://www.doind.gov.np/foreign-investment-technology-transfer-section
12. FDI and INDUSTRIALIZATION
FDI plays a vital role in industrialization by bringing in capital, technology, market opportunities, and
fostering linkages with domestic industries.
It can accelerate the pace of industrial growth, promote job creation, skill development, and upgrade
infrastructure, thereby contributing to the overall economic development of a country.
8/3/2023 FDI 12
FDI
INDUSTRIALI
ZATION
Capital and technology
Infusion.
Job Creation and skill
Development
Supply chain
Development and
Linkage
Market Access And
Export Promotion
Infrastructure
Development
13. Challenges and Opportunities
Challenges faced by Nepal in attracting FDI (Nepal an unattractive investment location)
A restrictive FDI rule,
political stability,
high import tariffs,
exit barriers for firms,
stringent labor laws,
poor quality infrastructure,
centralized decision-making processes,
lack of export processing zones
lack of export Trading House .
8/3/2023 FDI 13
14. Challenges and Opportunities
The most feasible project areas for foreign investment in Nepal:
Agriculture and agro-based industry
Untapped Sectors
◦ Renewable Energy
◦ Information Technology and Outsourcing
Tourism and Hospitality industries
Manufacturing and Export-oriented industries
Infrastructure Development
Service industry
Mineral Resources and mineral-based industry
Textile and apparel industry
Cross-border Trade and Logistics
Startups and Innovation
These are some potential areas where Nepal can attract further FDI inflow, leveraging its untapped
sectors, strategic location, and growing market potential. The government's efforts to improve the
investment climate and facilitate ease of doing business further enhance these opportunities.
8/3/2023 FDI 14
Why Invest in Nepal?
• Foreign investors are allowed 100 percent ownership of company
in most sectors like :
1. Cottage industries
2. Services
3. Arms and Ammunition
4. Real estate
5. Film industries
6. Security printing
7. Travel agency
8. Trekking agency
9. Water rafting
15. Conclusion and Recommendation
Conclusion:
FDI holds great potential for Nepal's industrialization and economic development.
Untapped sectors, strategic location, and addressing challenges are key factors in attracting FDI and
realizing its benefits.
FDI can contribute to infrastructure development, job creation, technology transfer, and global
competitiveness.
Recommendation:
Implement investor-friendly policies, streamline bureaucratic processes, and provide incentives in
targeted sectors to attract FDI.
Improve infrastructure, enhance the skilled workforce, and promote investment opportunities
through marketing campaigns and investment promotion events.
Foster collaborations with international organizations and seek bilateral agreements to attract FDI
and support sustainable industrialization in Nepal.
8/3/2023 FDI 15
16. References
Nepal FDI , CEIC Data, https://www.ceicdata.com/en/indicator/nepal/foreign-direct-investment
Ministry of industry commerce and supplies, Department of industry, https://www.doind.gov.np/foreign-
investment-technology-transfer-section
Survey Report on FDI in Nepal 2021/2022, NRB Economic Research Department, https://www.nrb.org.np/red/a-
survey-report-on-foreign-direct-investment-in-nepal-2020-21/
Government of Nepal, Embassy of Nepal, Berlin Germany , Trade and Investment Opportunities in Nepal,
https://de.nepalembassy.gov.np/trade-investment-opportunities-nepal/
Legal Framework of Foreign Investment in Nepal, MadhabPaudel, Former Secretary, Ministry of law and justice
,GON
HARi BANSH JHA, Nepal’s FDI challenges, OBSERVER RESEARCH FOUNDATION
Foreign investment scenario in Nepal, BIZSEWA
Angle One, FDI
Factors that affect foreign direct investment (FDI), 28 November 2019 by Tejvan Pettinger
Foreign Direct Investment is key, Bussiness Weekely, Dr.Keen Mhlanga
8/3/2023 FDI 16
