Multinationals’ profits slide as political turmoil, India’s GST change and migration weigh on demand
Summary
Multinational companies in Nepal report declining profits due to political instability, India’s revised GST regulations, youth migration, and currency depreciation, impacting consumer demand and business performance.
Key Points
- Political instability and regulatory delays have negatively impacted multinational companies operating in Nepal.
- India's revised GST regime has significantly affected the profitability of companies, especially those in the personal care sector.
- Outward migration of youth and depreciation of the Nepali rupee have increased costs and reduced domestic consumption.
- Unilever Nepal and Bottlers Nepal reported declines in profits and losses due to these challenges and seasonal market shifts.
