China becomes Nepal’s largest Foreign Investor

Kathmandu – China has emerged as the largest foreign investor in Nepal, surpassing all other countries in terms of approved foreign investment and project numbers. According to Nepal’s Economic Survey 2082/83, foreign direct investment (FDI) from China accounts for nearly half of the country’s total approved FDI.

Data compiled up to mid-March 2082 indicates that China commands a dominant 48 % share of the country’s total approved foreign direct investment (FDI), while India holds approximately 17.1% and other nations together contribute around 34.9%.

The report also states that China leads in the number of approved projects in Nepal. Out of all approved foreign-funded projects, nearly 45.5% involve Chinese investment, compared to India’s 11.9% share, and other nations at 42.6%.

Nepal currently facilitates foreign direct investment (FDI) through two main mechanisms: the automatic route and the approval route. To date, the Department of Industry has approved a total of 7,951 projects, including 968 under the automatic route and 6,983 through the approval route. Collectively, these projects represent investments worth Rs 625.58 billion and are expected to create approximately 362,545 jobs across the country.

According to the Economic Survey, the current fiscal year (2082/83) reflects a changing investment pattern. By mid-March, the government had approved 554 projects valued at Rs 40.70 billion. Of these, 377 projects were cleared through the automatic route, while 177 were approved under the traditional approval route.

Compared to the same period in the previous fiscal year, the number of approved projects increased from 427 to 554. However, the total pledged investment declined slightly from Rs 44.66 billion to Rs 40.70 billion.

The projects reflect substantial investment inflows and are expected to boost employment generation, reinforcing Nepal’s growing appeal to foreign investors and its expanding economic opportunities.