Introduction
The 16th periodic plan of Nepal outlines specific quantitative targets and strategic directions for the industrial and manufacturing sector. It aims to increase the sector’s contribution to the GDP and generate significant employment through domestic production and innovation.
Main Content
The following tables detail the key indicators and investment projections for the industrial sector during the plan period (2081/82 to 2085/86).
Key Quantitative Targets:
| S.N. | Indicator | Unit | Base Year (2079/80) | Target (2085/86) |
|---|---|---|---|---|
| 1. | Avg. Annual Growth Rate of Manufacturing | % | -2.0 | 9.4 |
| 2. | Contribution of Industry to GDP | % | 5.2 | 5.4 |
| 3. | Additional Employment in Industrial Sector | Number | - | 2,50,000* |
| 4. | Registered Large Industries | Number | 8,947 | - |
| 5. | Registered MSMEs | Number | 6,37,000 | - |
| 6. | Workplace-based Employment Training | Number | 153 | 15,000 |
| 7. | Share of Industrial Goods in Total Exports | % | - | 8.5 |
| 8. | Industrial Village Establishment (753 Local Levels) | Number | - | 753 |
*Note: Includes IT and other manufacturing sectors.
Investment Projections (Total Rs. 74,625 Crore):
| Source of Investment | Share (%) | Projected Investment (Rs. Crore) |
|---|---|---|
| Private Sector | 88.4% | 65,938 |
| Government Sector | 7.3% | 5,423 |
| Cooperative Sector | 4.4% | 3,264 |
| Total | 100% | 74,625 |
Key Takeaways
- The target average annual growth rate for the manufacturing industry is set at 9.4%.
- The private sector is expected to contribute the largest share of investment at 88.4%.
- The plan aims to establish and operate industrial villages in all 753 local levels.
- The government has declared the upcoming decade as the “Production and Employment Decade.”
What to Avoid
- Do not confuse the base year (2079/80) data with the final target year (2085/86) goals.
- Avoid assuming the government is the primary investor; the private sector holds 88.4% of the projected investment.
- Do not overlook the “Farm to Factory” program which links local agriculture to industrial value chains.
FAQ
Q1: What is the target for the industrial sector’s contribution to GDP by the end of the 16th plan? The target is 5.4%.
Q2: How much total investment is projected for the manufacturing sector in the 16th plan? A total of Rs. 74,625 crore (7 kharab 46 arba 25 crore) is projected.
Q3: What is the target for additional employment in the industrial sector? The target is to create 2,50,000 additional jobs.
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