Nepal lies between two of the fastest growing economies of the world, India and China. As a least developed country, Nepal is entitled to preferential treatment in a number of rich markets. Two other advantages, according to investors already in Nepal, are a low-cost and non-hostile workforce and a small and accessible bureaucracy. The natural as well as cultural assets of Nepal offer very substantial opportunities to investors.
The country has a range of climatic conditions - from the tropical to the sub-arctic - and a terrain that is mountainous in the north, hilly in the middle and near sea level in the south. Many niche agricultural products can thus be grown in Nepal, medicinal herbs and high-quality tea being but two examples.
There is huge potential for hydropower. About 44,000 MW is thought to be economically feasible, which may be contrasted with about 800 MW currently being generated. Nepal has not been able to exploit much of its potentiality and the people in Nepal still face severe power shortages. In order to harness and develop hydropower, the government is encouraging private foreign investment in this sector. In the last several years, the government under competitive basis has been awarding licenses to private sector developers with over 5000MW of hydropower development in various stages of progress where well known international and domestic firms are involved. This priority sector provides great opportunities for contractors, equipment suppliers, and consultants alike.