Nepal opens foreign investment in primary sectors of agriculture

The Ministry of Industry, Commerce and Supplies of the Government of Nepal through a Nepal Gazette 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.

Prior to this notification, inclusion of “poultry farming, fisheries, bee-keeping, fruits, vegetables, oil seeds, pulse seeds, dairy and other primary sectors of agriculture” in number 1 of the Schedule put a blanket restriction for foreign investors in such sectors.