December 19: Industrial development in Nepal has failed to gain momentum for a long time. Manufacturing industries are continuously shrinking. The lack of easy supply of raw materials, non-availability of loans at concessional rates, migration of skilled workers, frequently changing government policies, lack of customs exemptions, and the inability of the government to bring a special policy for industrialization have affected the development of industries in Nepal.

The contribution of the industrial sector to the gross domestic product (GDP) was 10 per cent three decades ago but has now shrunk to 5-6 per cent in the last decade. Even though the people's representatives and officials at the level of policy-making and implementation of the state keep repeating that the industrial sector needs to be developed more rapidly for economic prosperity, the reality is the opposite.

The private sector complains that the government neglects the industry. Industrialists complain that the state has not prioritized industrial development. Chairman of Nepal Chamber of Commerce Rajendra Malla said the development of industries is only possible if the government brings a special package for industries based on basic raw materials.

China, the northern neighbour, and India, to the south, use their huge industrial structures for 'mass production'. Due to this, the production cost of their goods is low.

Nepal has an open border with India in the east, south and west. Although the border with China is not as open as that of India, it is not difficult to import goods. In such a situation, Nepali industrial products have to compete with Indian and Chinese products in the domestic market. Stakeholders shared that they are losing the market because Nepali goods cannot compete with the Indian and Chinese products.

Developed countries in the world are encouraging protectionism. An example of this is the growing trade war between the US and China. "Nepal government also has to bring a special type of industrial policy for the protection and development of the industrial sector," said NCC President Malla.

Stakeholders shared that for the industrial development of the country, there should be a timely review and timely revision of the policies that were made a long time ago.

Dinesh Shrestha, vice president of the Federation of Nepalese Chamber of Industries and Commerce, said that although there were various concessions for industrial development in the previous Act, all of them have been removed recently.