FDI increases in Nepal.

Projects with Foreign Direct Investment (FDI) continue to increase despite the adverse situation facing Nepal, state-run Radio reported on Wednesday.

Director General of the Department of Industry Tana Gautam was quoted by the radio as saying that the number of such projects in Nepal has so far reached 1,062 with investment of above 28.5 billion Nepali rupees (404 million U.S. dollars).

In the past 12 months, 76 projects with FDI have been registered. However the number of such projects registered in a similar time period earlier was 35, he said.

According to the Department of Industry, around 1.44 billion rupees has been invested through the new projects. The total investment in the 35 projects was 546 million rupees.

Foreign direct investment in Nepal are made on teaching hospital, health training centers, medicine, hotel, restaurant and information technology among others. The information technology sector has attracted the largest share of FDI.

Software programs developed here are sold at a maximum rate in India and the United States while Red Mushroom capsule and " aggregated stones" are also exported, according to the department.

The number of industries established with FDI and their production are increasing every year, Gautam said.

The situation of foreign investment is positive this fiscal year (July 16, 2005 to July 15, 2006) compared to that of the previous year, Gautam said.

As goods produced with foreign investment in Nepal are cheaper at the international market compared to those produced in other countries, the demand for such goods among the consumers is high, he said.

FDI has been on the rise for some time in the Information Technology sector as countries like India, the United States and South Korea are increasing their investments in this sector.

Projects with FDI have increased in Nepal since the government adopted a liberal economic policy for the economic development of the country in 1992, according to Gautam.

Source: Xinhua