Opening agriculture sector for FDI

The Ministry of Industry, Commerce and Supplies of the Government of Nepal, through a notification dated 4 January 2021, has amended the Schedule of Foreign Investment and Technology Transfer Act, 2019, effectively allowing foreign investment in primary sectors of agriculture. The Schedule of the Act (commonly known as “negative list” for foreign investment”) enlists the industry sectors where foreign investment is prohibited. The notification amends number 1 of the Schedule to exempt large scale industries exporting at least 75% of their production from poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, dairy or other primary agriculture sectors from the negative list.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Primary (Agriculture, forestry and fishing)

• Sources:

  • Imperial Law Associates, Nepal opens foreign investment in primary sectors of agriculture, https://www.lawimperial.com/nepal-opens-foreign-investment-in-primary-sectors-of-agriculture/, 11 Jan 2021
  • XinhuaNet, Nepali gov't decides to open agriculture sector for FDI with certain restrictions, official says, http://www.xinhuanet.com/english/2021-01/01/c_139635045.htm, 01 Jan 2021