May 29: The Economic Survey of the government has revealed that the performance of all industries except hydropower is disappointing compared to the past.

It is estimated that the growth rate of the total value added in the mining and quarrying sector will be 1.1 percent in the current fiscal year (FY). Last year, this growth rate was 8.8 percent. Thus, the contribution of the mining and quarrying sector to the total value addition will be 0.51 percent.

Similarly, it is estimated that the growth rate of the total value addition of the manufacturing industry will be negative by 2 percent, which was 6.7 percent last year. Thus, the contribution of manufacturing industry to the total value addition will be 5.3 percent. Similarly the growth rate of the total value addition in the construction sector is estimated to be negative by 2.6 percent, which was 7 percent last year. In this way, the contribution of the construction sector to the total value addition will be 5.5 percent.

It is estimated that the growth rate of the total value addition of water supply, sewage, waste management and recycling activities will be 2.2 percent. The contribution of this sector to the total value addition will be 0.46 percent. The sector of electricity, gas and steam and air conditioning supply services however will be positive. It is estimated that the growth rate of the total value addition of this sector will be 19.4 percent in the current year.

The Economic Survey has summarized that the industries in many sectors have been affected due to the slowdown in economic activities, reduction in production, laxity in construction work. The survey has made it clear that the hydropower sector seems to be positive after the completion of construction of some hydropower projects.

Kamalesh Kumar Agrawal, senior vice president of Nepal Chamber of Commerce, says that competitiveness should be increased to raise the status of industries. Agrawal said, “The current need is to enable the domestic industries so that they can compete in the market. For this, tax concessions should be given to the industries as well as investment-friendly legislation should be created. It is also necessary to reduce the price of electricity.”