Madhesh Province govt plans to organise investment summit to spur economic activity

JANAKPURDHAM: Madhesh Province, which currently contributes 13% to national gross domestic product (GDP), has forwarded a plan to increase its share by spurring economic activity. Expansion of production, encouragement of private sector investment and the growth of economic activities have been given top priority.

Despite having adequate natural resources, fertile agricultural land, an abundant labour force and potential for cross‑border trade, the province’s economic potential remains largely untapped. In response, the provincial government has proposed programmes to expand productive sectors alongside industrialisation and investment promotion.

Jaya Kumar Ghimire, Secretary at the Ministry of Industry, Commerce and Tourism in Madhesh Province, said tourism promotion has been given special emphasis alongside the expansion of productive sectors so the province can boost its contribution to the country’s GDP.

"We have accorded priority to investment promotion in the industry, trade and service sectors in the province," he said, adding that although a budget was allocated for an investment summit in the last fiscal year, 2082/83, it could not be materialised for various reasons.

The province will be unable to increase GDP unless adequate investment flows into industry and business, Ghimire said. The government therefore plans to organise an investment summit in the current fiscal year 2026/27.

He said programmes will be launched to identify and upgrade tourist areas to attract more visitors. Other planned measures include development of industrial infrastructure, establishment of industries based on agricultural produce, promotion of small and medium enterprises, management of trans‑border trade and provision of administrative facilitation to investors.

Modernisation of agriculture, expansion of irrigation, development of industrial villages and industrial zones, tourism promotion, creation of an investment‑friendly legal environment and partnerships with the private sector were all described by Ghimire as imperative to stimulate economic activity.

Dr Bhogendra Jha, former vice‑chairman of Madhesh Provincial Policy and Planning Commission, said schemes such as an investment summit would play an instrumental role in creating an investment climate in the province. Investment commitments must not remain on paper but be translated into action, he added, while simplification of legal and administrative processes for industrial operations and regular dialogue with the private sector are also needed.

Dr Jha argued that once production, industry, trade and service sectors expand, the economic size of the province will increase.

A ‘Report on Economic Activities of Madhesh Province’ unveiled by Nepal Rastra Bank (NRB) in October stated that national GDP in fiscal year 2024/25 was estimated at Rs 6.1 trillion at consumer prices, while the GDP of Madhesh Province was estimated at Rs 804 billion. While the national economy was estimated to have grown by 3.99% during the same period, Madhesh Province’s economic growth was projected at 3.88%.

Madhesh Province has fertile land, especially for paddy production, while milk, eggs, fish, fruit and vegetables are other key products.

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