Kathmandu — The Council of Ministers approved a sweeping revision to Nepal's Foreign Direct Investment Policy on Monday, raising the automatic-approval threshold to $50 million and opening semiconductor assembly, electronics manufacturing, and data-centre operations to full foreign ownership for the first time.
Industry Minister Bina Magar said the changes were designed to position Nepal as a "nearshoring option" for firms looking to diversify supply chains away from larger regional manufacturing hubs. The policy also cuts the time for environmental clearance on qualifying projects from 120 days to 45.
Business chambers welcomed the move, though some economists cautioned that unreliable electricity supply outside the Kathmandu Valley and a shortage of skilled technicians could blunt its impact. The Investment Board Nepal said it has already fielded preliminary inquiries from three electronics assemblers based in Vietnam and Taiwan.