Kathmandu-  Nepal holds strong business potential, but administrative and other hurdles often force entrepreneurs to exit from their venture. 

In the past decade, over 4,300 industries were registered with investment commitments totaling Rs 2.291 trillion. These registrations suggested the creation of thousands of jobs and production worth billions.

Data from fiscal year 2014/15 to the first eight months of the current fiscal year shows significant industrial potential. Even if one-third of the committed investment had materialized, the industrial sector should have been thriving. However, the current economic situation does not reflect that.

Industry registration indicates entrepreneurs see market potential, but launching operations takes 3 to 4 years due to multiple procedural and capital-related challenges.

Industries must notify the Department of Industry once operational, but the department lacks consolidated data on how many registered industries are running. Although it receives some reports, it hasn’t maintained integrated records.

Director General Rajeshwar Gyawali says they will start publishing such data from next year to track the full cycle from registration to operation.

Meanwhile, 1,449 large industries were registered in the last  ten years.  These industries,  plays crucial for the employment and production, usually involve higher investments. 

Despite strong registration numbers, majority industries never start operations, revealing a wide gap between investment commitments and actual implementation—especially in foreign investment.