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Agriculture is the major sector of Nepalese economy. It provides employment opportunities to 66 percent of the total population and contributes about 36 percent in the GDP. The Ministry of Agriculture and Livestock Development bears overall responsibility for the growth and development of agriculture sector.

(Source: Agriculture Sector) 


Nepal’s investment opportunities in Hydroelectricity, tourism, service, and mega infrastructure developmental projects call for large amounts of funds which cannot be supplemented by the existing capacity of commercial banks and financial institutions. Therefore, the government has established Infrastructure Development Banks (IDB) under the Banks and Financial Institution Act (BAFIA), 2074 (2017). Also, the Nepal Rastra Bank is shrinking the number of banks and financial institutions (BFIs) in order to increase the capacity of a BFI to invest in mega projects rather than the current practice of consortium financing. (Source: Banking in Nepal: Existing Scenario

Information Technology (IT)

Information technology sector in Nepal has seen a strong growth in last decade. The sector mainly comprises of small companies undertaking outsourced jobs from around globe.

Hydro Power

The hydropower potential of Nepal's river systems is over 90,000 MW. Hydropower utilization is currently less than one per cent of the proven potential. The total installed hydroelectric generation capacity is around 900 MW. Nepal Electricity Authority (NEA) generates 539 MW (485 MW from hydro and 54 MW from liquid fuel). Independent Power Producers (IPPs) generates 361 MW. The national grid represents the overall hydroelectric industry of Nepal as it accounts for almost 98 % of the capacity and 99 % of the energy supplied.

(Source: A review of hydropower projects in Nepal)


Although manufacturing sector represents a major portion of the industry in Nepal, the development of this sector has not been as robust compared to the service sector. The trade deficit in major part is contributed by a weak production base in Nepal.

(Source: Manufacturing Sector Profile

The Observatory of Economic Complexity – MIT (OEC): Nepal