Opinion | Why industrial federalism is necessary
Summary
Nepal's industrial sector is shrinking despite constitutional provisions for provincial industrial promotion. Fiscal centralisation and fragmented governance hinder economic transformation and job creation.
Key Points
- Nepal's industrial sector contribution to GDP has declined over the past decade, signaling structural economic weakness.
- The Constitution assigns provinces significant responsibilities in industrialisation, but fiscal centralisation limits their effectiveness.
- Provinces have initiated industrial development efforts despite resource constraints, but coordination across layers of government is weak.
- A coordinated national industrial strategy and stronger economic cooperation between provinces are necessary for sustainable economic transformation.
