The overall opportunities for FDI in Nepal can be divided into three main headings namely comparative advantages, access to market and policy initiatives.
4.7.1 Comparative Advantsges
Data shows that Nepal's most profitable sector for FDI are hydropower generation, cement manufacturing, Tourism industry, mining and exploitation, Agro-based indusries, Herbal and medicinal industry, Tea industry, Garment Industry, Carpet Industry, Pharmaceutical industry, Textile Industry, Education, Health, air services, IT industry and Jewellery Industry.
Many studies conducted by Government of Nepal and other related researchers have convienced that Nepal has a lot of comparative advantages in many sectors. The major comparative advantages are listed below based on the study of South Asian Watch on Trade, Economics and Environment (Adhikari, 2013). …show more content…
The approval process of the policy draft is in the final phase. The proposed policy focuses on providing a comparative advantage to the private sector and increasing competitiveness in the global market by simplifying procurement and technology transfer to increase the flow of FDI. This all show that Nepalese Policy regarding FDI will be clear and transparent through new policy announcing.
4.7.4 Hospitable Climate and People
Nepal's geographical structural is unique. Its lowest part is only 60 meter high from sea level and highest part is 8848 meter high, which is the highest mountain in the world. This variation in altitude includes many different kinds of climatic conditions. Nepal has tropical to polar climates and many parts it cointains temtarate climtes. Its climate is suitable for every person in the world as it ranges from extreme hot to extreme cold within very short elevation. LIke climate, Nepal has diverse ethnicity with hospitable