Bagmati-based industries run at just 41 percent capacity with high production costs
Summary
Industries in Bagmati Province are running at just 41.08 percent of installed capacity as unreliable electricity, rising production costs and imported raw material dependence weigh on output. The province’s economy is still projected to grow 5.40 percent in FY 2025/26, making it Nepal’s largest provincial economy.
Key Points
- Industries in Bagmati Province are operating at 41.08 percent of installed capacity, up slightly from 37.49 percent in the previous period.
- Unreliable electricity, voltage fluctuations, high production costs and imported raw material dependence are constraining industrial growth.
- The surveyed industries employ 8,232 people, including 8,124 Nepali workers and 108 foreign workers.
- Bagmati Province’s economy is projected to grow by 5.40 percent in FY 2025/26, with GDP estimated at Rs 2.423 trillion.
