Nepal: Nepal Attempts to Increase Foreign Investment Opportunities for Agriculture as it Pushes Self-Reliance
On January 1, 2021, the Government of Nepal’s (GON) Ministry of Industry, Commerce and Supplies (MOICS) applied a provision in the Foreign Investment and Technology Transfer Act 2019 to allow foreign direct investment (FDI) in primary agriculture activities such as grains, poultry, dairy and horticulture. The amendment allows FDI in primary agriculture if 75 percent of the products are exported, and local officials estimate that through the order, Nepal could potentially export $5 billion annually in agricultural products. On January 20, the Supreme Court of Nepal issued an interim order, which is currently in effect, directing the government not to implement the agricultural FDI decision. Meanwhile, on February 23, 2021, the Confederation of Nepali Industries announced a “Make in Nepal” campaign to support “self-reliant” manufacturing and increase global demand for Nepali goods, including food and beverages.
