Economic Opportunity

Nepal- Beacon of investment opportunities in South Asia

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Investment In Nepal

Over the years Nepal is becoming a bright spot in the world economy with its liberalized policies, investment- friendly environment and having one of the lowest tax slabs even as the sectors such as hydropower, industrial manufacturing, services, tourism, construction, agriculture, minerals and energy provides ample opportunities.

Though Nepal is emerging as a favorable investment destination many a times foreign investors remain clueless about its vast potential. Lets find out top three most sought after sectors in Nepal which can yield high returns.

Tourism: This sector provides ample opportunities as Nepal expects a high footfall of tourists from all parts of the world owing to its scenic beauty and picturesque mountains. Also, Nepal shares border with its two big neighbors India and China. These two countries have a very big middle class which has interest and passion for travelling. Nepal understands this very well so it has been taking several steps to woo the tourists from India and China.

This opens door for many lucrative investment choices. One of the best ways is to buy shares in tourism-related stocks such as hotels, airlines or restaurants. Also you can invest in opening a resort or travel agency which can give high dividend in future.

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According to the Nepal Tourism Board, the Himalayan nation received a total of 4,76,481 foreign tourists by air in the first six months of 2023.

Hydropower: There is high potential in the hydropower sector in Nepal. Investing in large-scale hydropower plants is a very good option. Even the small investors can take advantage by buying shares in related companies when they go public.

Several hydropower projects are underway in Nepal. This provides a good opportunity for both ordinary and large investors. The situation has been brightening since Nepal concluded Power Trade Agreement with India in 2014 paving the way for trade of electric power just like other marketable commodities. This now ensures predictability of market once electricity is produced.

Medical Tourism: Nepal has a very good workforce of doctors who are as qualified as their western counterparts. Though the infrastructure and equipment in Nepali hospitals is not comparable to West but the quality of doctors is high and the cost of treatment is low.

A simple bypass surgery costs around a hundred thousand dollars in west, while the same surgery can be done in Nepal at a fraction of the price.

Investment Board:

With the view to attracting foreign as well as domestic Investment to boost the economy, the Government of Nepal has constituted a high level Investment Board, chaired by the Prime Minister of Nepal. The main objective of this board is to facilitate investors in investing in the potential sectors in Nepal. It provides one window facilities to the investors.

These are a number of investment ideas that can generate significant returns over the years. There will be even more opportunities in Nepal as the middle class population grow in Nepal. Rate of returns on investment in Nepal is high.

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