Investment in nepal

Theme: Emerging Business power of
China & India and it’s impact on Nepal

Present to you by: Ramesh K Raut,MBA

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Presentation Coverage:
1. Background
2. Current Scenario of Nepal, India and China in terms of GDP and
Economic growth
3. Data Analysis and relatively its impacts
4. How Nepal Can Capitalize its Location
5. The negative impacts on Nepal
6. Nepal GDP Projection after capitalization of its location
7. How Nepal can multiplier the GDP

The emerging business power of China and
India and its impact on Nepal

1. Background
•Nepal lies between the two big countries China
and India Which represent the world’s two largest
and fastest emerging economies. Their bilateral
trade has continuously grown over the past two
decades. The largest exporter and importer are
doing their economic transactions where Nepal is
in-between of them with lots of business
opportunities.

1. Background cont.….
• The two emerging economies in our neighborhood would
be both opportunity and challenge to us. For this, we
need to ponder over linkages of growing economies with
our national economy.
• We can identify infrastructural linkage, economic linkage
and linkage in ideas and thoughts that will further
strengthen our relations, propelled by, no doubt,
interdependence and technology

•China and India Relation with Nepal: "Geography made us neighbor, History made us
friend and Economics made us partner"

2. Current Scenario of Nepal, India and China
World : GDP (Nominal) : US$ 71.83 trillion
GDP (PPP) : US$ 84.97 trillion
China: GDP (Nominal) : US$ 8230 billion (13.27% of the world GDP)
India : GDP (Nominal) : US$ 1758 billion
Nepal: GDP (Nominal) : US$ 40.81 billion
Source: http://www.worldbank.org/

2. Current Scenario cont.….
China: Exports – US$ 2.021 trillion (Largest Exporter)
Second largest Importer
Economic Growth – 7.8 percent
India: Exports – US$ 309.1 billion (19th largest exporter)
10th largest importer
Economic Growth – 5.4 Percent
Nepal: Exports – US$ 1 billion
Imports – US$ 6.15 billion (1/3 from India, 26% from China)
Economic growth – 4.5 percent
Source: http://www.worldbank.org/

3. Data Analysis (GDP, Economic Growth)
Last 4 Years GDP of Top 10 Countries

a. Forecasted GDP (Top 5 Countries)

The top 5 countries will occupy the 48 % of total world
GDP in 2015 A.D


From 2019 A.D China will become the largest
producer around the world where the India
will remain third until 2047 A.D

3. Data Analysis cont.…

The forecasted data shows that Nepal will
produce only 0.38 percent of world total GDP at
2050 (Max 0.40%, Min 0.29 %)


This shows that the top 5 countries will occupy the 48
percent of total GDP in 2015 and gradually increased up
to 55 percent at 2050


The China and India will capture 22 percent of the
portion from total GDP of the world which will
gradually increase to 35 percent at 2050.

• Top 5 countries will have the more than half resources of
the world,
• Some more countries may suffer from the food shortage,
• China and India will have the one third of Total GDP after
2035,
• The transaction between India and China will also
increase (even the percentage remain same the amount
will increase)

4. How Nepal Can Capitalize its location ?
•The yearly transaction between China and India is
approximately 560 million, this transaction could
be done via Nepal.
•As a transit point Nepal can benefit from the
service it renders. Those services includes
transportation, warehousing, restaurant services,
recreation services etc.

4. How Nepal can capitalize cont..…
• Out of the total population of the world the 15.48
percent (1.10 billion) of the population are Hindu,
particularly in India 1.01 billion of peoples are
practicing Hindu religion.
• Out of the world total population 11.64 percent (826
million approx.) are practicing Buddhist religion in
general particularly in China and India 495 peoples are
practicing Buddhist religion.

For Buddhist

Attract Chinese

For Hindus

Attract Indians

• From the religious tourism Nepal can earn more than 20
percent of its total GDP in a year. (Saudi Arabia is
generating 5% of its total GDP by Muslim rituals Hujj)
• China is the leading renewable energy producer and
spending billions of US dollars where Nepal has the
adequate, appropriate locations from where the more
energy can produce in lesser price.

• The remittance will be increase because of India and
China where Nepal can send the skilled, unskilled
labour (Currently, More than a 10 lakhs Nepalese
peoples are working in India )

5. Negative impacts on Nepal
• The Domestic market will dominate by foreign products
• Chances of increase in terrorism (illegal activities)
• Environmental destruction
• Existence of Nepal will be in danger because of two
giant countries power clashes
• Chances of Practicing foreign culture than own culture.

6. Nepal GDP Projection after capitalization of its location

7. How Nepal can multiplier the GDP ?
• If the political commitment stabilization there will be
more Foreign Direct Investment (FDI)
• If Nepal promote the agriculture the contribution from
agricultural sector will increase significantly. (Home stay
could be the good idea)
• Minor Infrastructure development will be more beneficial
(Sanitation, Hotels and transportation facility etc.)

At last, every people doesn't have the
equal understanding level
see how the people translate every
complicated theories on their word …..

Investment in nepal

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