FDI commitments plunge 66% to Rs. 11.12 billion in two months

Kathmandu / Sept. 22: Nepal has recorded a notable decline in foreign direct investment (FDI) commitments during the first two months of the current fiscal year 2026/27.

According to the Department of Industry, total FDI commitments stood at Rs. 11.12 billion for 328 projects between mid-July and mid-September 2026.

This marks a decrease of Rs. 21.97 billion, or 66 per cent, compared to the same period last fiscal year, when commitments had reached Rs. 33.09 billion.

In the month of Bhadau, FDI commitments stood at Rs. 6.35 billion. FDI commitments in Bhadau this year declined compared to around Rs. 9 billion recorded in the same month last year. Of the total commitments, Rs. 9.74 billion came through the automatic route, while Rs. 1.37 billion was invested via the approval route.

A total of 328 industries were registered with foreign investment, including 322 through the automatic route and only six through the approval route.

Most of the FDI is focused on small industries. A total of 323 small-scale industries have been registered. Only two medium-scale industries have been registered while three large–scale industries registered during the review period.

Category-wise, most attraction of foreign investment in terms of numbers of industry registration is seen in the information and communication technology sector during the review period.

A total of 212 industries have been registered in information and communication technology sector. This accounts for 65 per cent share of the total number of industry registration under FDI.

The second place goes to the tourism sector where 70 industries are registered. This is 21 per cent share of the total number.

Similarly, 26 industries are registered in service and 18 industries in manufacturing-based industries.

During the review period, only one industry each has been registered in energy sector and agricultural related sector.

No industries registered in infrastructure and mining sector during the first two months of the current fiscal year. Despite ICT leading in the number of projects, the tourism sector attracted the highest investment value at Rs. 3.74 billion. The service sector followed with Rs. 3.30 billion investment commitment.

Similarly, energy sector accounted for Rs. 2 billion, manufacturing sector Rs. 1.23 billion and information and communication technology sector Rs. 816 million.

Agro-based sector received the lowest commitments at Rs. 20 million.

FDI approved industries for the first two months in current fiscal year have made their commitment to provide jobs to 3,447 people.