The perception that Nepal has no future is fueled by migration trends. Many believe everyone has already left, leaving only 20 million people behind. But as an entrepreneur, I see this as an opportunity rather than a problem.
Our foreign exchange reserves are growing, meaning household savings are increasing. Even low-income families now have more spending power. It’s high time we shifted our mindset from seeking "cheap" to demanding "quality."
Let’s focus on agriculture. While Nepal produces significant amounts of rice (5.5 million tons), wheat (2.5 million), and maize (2.5 million), per capita availability suggests inefficiencies in distribution or productivity. The government and political parties keep emphasizing agriculture, yet policies remain stagnant.
The real dilemma? Should we promote subsistence farming or large-scale commercial agriculture? For example, should a farmer keep two cows or should a village pool resources for a 1,000-cow dairy? The approach matters.
Currently, support for farmers is input-based seeds, fertilizers. We need to shift to output-based incentives—rewarding productivity. Another issue? Budgets are scattered. Agriculture contributes NPR 13-14 trillion to GDP, yet our per-hectare yield lags behind neighbors. This gap is an opportunity.
Private investment in agriculture is minimal, limited mostly to poultry. To transform the sector, we must focus on agro-processing and zoning—growing maize in the east, mustard in the west—and tailoring infrastructure accordingly.
Even though the budget season consulted the private sector, the process felt repetitive. Instead of rehashing old suggestions, let’s change direction. Imagine if the government and private sector swapped seats at the table. Right now, we don’t even need to talk about exports—just value addition, import substitution, and tax rationalization could boost agricultural GDP. Private investors need clarity. With the right policies, capital will follow.
(Excerpts from remarks by Anand Bagaria, Managing Director of Nimbus at a discussion on Domestic Investment organized by Nepalkhabar.)
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