China has emerged as the largest foreign investor for Nepal. According to the Economic Survey 2082/83 released by the government, the foreign direct investment (FDI) from China accounts for nearly half of all approved foreign direct investment (FDI) in the country.

Data compiled up to mid-March 2082 reveals that China holds a dominant 48% share of the total approved foreign investment. India stands as the second-largest investor with 17.9%, while all other nations combined make up the remaining 34.1%.

China Leads in both Value and Volume

China's footprint is equally prominent in the volume of ventures. Out of the total sanctioned projects in Nepal, 45.5% are Chinese-backed, followed by India at 11.9%, and other nations at 42.6%.

Currently, Nepal processes FDI through two primary channels: the automatic route and the approval route. The Department of Industry has greenlit a total of 7,951 projects—comprising 968 via the automatic route and 6,983 via the approval route—with a cumulative valuation of Rs 625.58 billion. These projects are projected to generate 362,545 jobs nationwide.

Current Fiscal Year Trends: More Projects, Less Capital

The Economic Survey highlights a shifting trend in the current fiscal year (2082/83). Till mid-March, the government approved Rs 40.70 billion across 554 projects (377 via the automatic route and 177 via the approval route).

While the number of projects increased compared to the same period last fiscal year—which saw 427 industries approved—the total financial commitment saw a slight decline from the previous year's Rs 44.66 billion.

Service and Energy Sectors Attract Highest Interest

A sectoral breakdown of the total foreign investment reveals where international capital is flowing:

The service and energy sectors remain the primary drivers of foreign capital inflow, whereas the mining industry continues to secure the lowest share of international backing.