Madhesh Province records weak economic growth, contributes 13.1 pc to national GDP

JANAKPUR: Madhesh Province is expected to record a weak economic growth rate in current fiscal year, with the province’s contribution to national gross domestic product (GDP) preliminarily estimated at 13.1%.

The National Statistics Office (NSO), Statistics Coordination Office, Dhanusha, released macroeconomic indicators on Wednesday showing that low outputs from paddy, fisheries and forestry sectors, together with a contraction in agriculture, have weighed on growth. Statistics Officer Nara Bahadur Kunwar said insufficient rainfall has hurt paddy and fish production, contributing to the slowdown.

The report noted the province’s growth has fallen from 3.18% in fiscal year 2023/24 to 2.72% in fiscal year 2024/25. The statistics office attributed the decline to adverse effects on agricultural production for two consecutive years.

Preliminary estimates indicate Madhesh Province’s share of the national GDP will be 13.1% in fiscal year 2025/26, the statistics office reported.

Raj Kishor Singh, a member of the Provincial Policy and Planning Commission, said the problem has emerged because the agriculture sector’s contribution in Madhesh has decreased. He said the upcoming budget will prioritise agriculture, education, health, infrastructure and social development.

The statistics office stated that unless agricultural output recovers, the province may continue to lag behind national growth, underscoring the need for targeted measures in the coming budget.

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