Nepal recorded a strong inflow of foreign investment commitments during the first eleven months of the current fiscal year 2082/83, with approved Foreign Direct Investment (FDI) reaching Rs. 47.61 billion. According to the latest report published by the Foreign Investment and Technology Transfer Section under the Department of Industry, investment commitments totaling Rs. 47,61,69,46,432 were approved through 914 projects between Shrawan and the end of Jestha. The figures indicate continued interest from foreign investors despite global economic uncertainty and changing regional investment dynamics.

In Jestha alone, Nepal approved foreign investment commitments worth Rs. 2.29 billion across 186 newly approved projects. The latest monthly figures suggest that investment activity remained active throughout the fiscal year and that Nepal continues to attract interest across multiple sectors ranging from agriculture and tourism to information technology and manufacturing.

One of the most notable developments has been the growing use of Nepal’s Automatic Route (AR) investment approval mechanism. Introduced to simplify investment procedures and improve ease of doing business, the system is becoming increasingly popular among foreign investors. Out of the 186 projects approved during Jestha, 178 projects entered through the Automatic Route, representing investment commitments worth Rs. 1.94 billion. Meanwhile, only eight projects were approved through the traditional Approval Route, although these projects accounted for a larger average investment size with commitments totaling Rs. 345.8 million.

Looking at the cumulative data for the current fiscal year, 711 industries received approval through the Automatic Route with total investment commitments of Rs. 7.71 billion. In comparison, 203 industries were approved through the conventional approval process and attracted significantly larger investment commitments totaling Rs. 39.90 billion. This trend suggests that while smaller and quicker investment decisions are increasingly moving toward automated approvals, larger capital-intensive projects continue to prefer direct regulatory approval.

The structure of foreign investment entering Nepal also highlights a strong concentration in small-scale industries. During Jestha, 183 of the 186 approved projects belonged to the small-scale category, while only three fell under medium industries and none qualified as large-scale industries. Across the entire fiscal year, out of 914 approved projects, 894 were classified as small industries, only 11 as medium industries, and just nine as large industries. These numbers reflect that Nepal continues to attract a high number of smaller investment ventures rather than large industrial commitments.

Sector-wise distribution reveals a different picture when measured by investment volume. Agriculture and forestry-based industries attracted the highest amount of committed capital despite accounting for relatively few projects. This sector secured investment commitments worth Rs. 22.08 billion through 16 projects, representing approximately 46 percent of total approved FDI. Tourism emerged as the second-largest sector with Rs. 12.99 billion approved across 202 projects, accounting for around 27 percent of total commitments. Service industries attracted Rs. 4.59 billion, while manufacturing industries received Rs. 3.57 billion in investment commitments.

Information and Communication Technology (ICT) stood out in terms of project numbers rather than capital size. The sector recorded the highest number of approved projects with 577 industries representing around 63 percent of all approved investments. However, total investment commitments in ICT reached only Rs. 2.36 billion, highlighting that most projects remain relatively small in scale. Infrastructure investment reached Rs. 1.65 billion through a single approved project, while the energy sector attracted Rs. 234.2 million across two projects and mineral-related industries secured Rs. 115 million.

Foreign investment commitments also continue to support employment generation. Projects approved during Jestha alone committed to creating employment opportunities for 1,221 people. Across the first eleven months of the fiscal year, approved projects collectively projected employment creation for approximately 25,450 individuals, reflecting the role of foreign investment in supporting domestic economic activity and job growth.

Alongside investment approvals, business mobility and technology collaboration also remained active. During Jestha, authorities recommended business visas for a total of 231 individuals including investors, company representatives, and dependent family members. Across the fiscal year, business visa recommendations reached 1,774 individuals. In addition, technology transfer agreements continued to grow, with three agreements approved in Jestha and a total of 48 approvals recorded during the eleven-month period.

The latest figures suggest that Nepal’s foreign investment landscape is gradually expanding through both simplified investment approvals and broader sector participation. While the country continues to attract a large number of smaller projects, the challenge ahead remains converting investment commitments into actual capital inflows and large-scale productive expansion capable of generating long-term economic growth.

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