FDI inflow up by 49.6%

Ajay Chhetri / Kathmandu, Jan. 15: Inflow of foreign direct investment (FDI) in the first five months of the current fiscal year (FY) has increased by 49.6 per cent in comparison to the review period of the previous FY.

The Current Macroeconomic and Financial Situation released by Nepal Rastra Bank (NRB) revealed that FDI accumulation in the first five months of the current FY remained Rs. 7.3 billion, which is up from Rs. 4.8 billion as recorded in the review period of the previous FY.

Along with the inflow of stock of the (FDI), the net FDI has increased by 57 per cent to Rs. 7.07 billion. In the review period of the previous FY, net FDI had amounted to Rs. 4.50 billion.

In the current FY, the inflow of FDI stock has remained encouraging. The macroeconomic data of the NRB showed that Nepal received an amount of Rs. 706.6 million as the FDI in the first month of the current FY. Similarly, an amount of Rs. 2568 million was received as the FDI in the second month while Rs. 2027 million was received in the third month. In the fourth month, the FDI amount was Rs. 1587 million in the fourth month and Rs. 436 million in the fifth month consecutively.

Economy rebound with the rising confidence in the market with the rapid proceeding of vaccination along with which FDI inflow remained buoyant. The Economic Activity Study of 2020/21 of carried out by the NRB showed that agriculture, industry, service and infrastructure have marginally gone up. Economic growth is crucial to motivating foreign investors.