Foreign Direct Investment (FDI) is perhaps an important indicator about the economy of a country. Nepal is a poor country and it is always in need of more FDI in order to develop the condition of the people. In fact, one of the direct impacts of FDI in the local economy is the generation of employment. Unemployment is a big problem for the country. Poverty is the biggest challenge. Today, I found two reports that India constitutes 44 pc of total FDI in Nepal. Well, I am not sure whether this statistics is accurate or not but it seems that the country is heavily dependent on India about FDI.
There is nothing wrong in coming 44% FDI from a neighboring country but if Nepal and India relationship suffer any difficulty then it can be bad for Nepalese economy.
(This entry was originally published in April 2009 and it based on the context on that time.)
