Opinion | Is manufacturing really expensive in Nepal?
Summary
Nepal faces a growing trade deficit with imports significantly outpacing exports, largely due to premature deindustrialisation and policy challenges that hinder domestic manufacturing growth.
Key Points
- Nepal's trade deficit widened to Rs1.78 trillion with imports vastly exceeding exports.
- Manufacturing has declined to 4.37% of GDP, indicating premature deindustrialisation.
- Imports include many consumer goods that could be produced domestically, revealing market potential.
- Policy and scale issues hinder manufacturing despite demonstrated demand and resources.
