United Nations
Information Centre | Nepal
Nepali Industries: opportunity for prosperity or source of conflict? - Issue No. 19
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Nepal is a mostly agricultural country but developed a small industrial sector long ago. Industrial production has been directed mostly at the domestic market but there have been some success stories with carpet and tea exports. Although most industries are located in the outskirts of Kathmandu, a fair number of large manufacturing industries are located close to the border with India, including in the
Hetauda-Birgunj and Butwal-Bhairawa-Lumbini areas where nearly 55,000 people are employed. Beyond tourism and agriculture, these industries could be where future jobs can be created as encouraged through the tax exemptions outlined in the most recent industrial policy of 2010 which adopted a strategy
of “transforming the agriculture-based economy into an industrial economy”.
Despite employment and economic acceleration being recognized as important for Nepal’s transition, many existing industries have faced difficulties over the past years with few signs that additional
employment opportunities can be created even in previously promising industries. The technology used is often outdated and fragile and Nepali financial institutions do not see a quick enough profit in the long
term investments required by the industrial sector. In addition, union-management relations are volatile and recent months have seen disruptive strikes spilling over outside factories into protracted, national
political battles. This field bulletin notes that the potential for large-scale employment acceleration in the industrial sector is far away and that it will require convincing investments in policy, training and
infrastructure, as well as attention to the relations between industries, communities and unions.
UNRCHCO ,   (2011 )
Type / Script:
Bulletin or Poster in English
Thematic Group:
 UNRCHCO (UNRCO) : UN Resident Coordinator and Humanitarian Coordinator Office (UN Resident Coordinator Office)
05.01.01  -  Industrial Development Support Services
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