Banking News – The Madhesh Province Government has prioritized expanding economic activities, increasing production, and encouraging private sector investment to raise the province’s contribution to Nepal’s Gross Domestic Product (GDP), which currently stands at around 13 percent.

Despite its fertile agricultural land, abundant workforce, natural resources, and strong cross-border trade potential, the province has yet to fully utilize its economic capacity. To address this, the government has launched initiatives focused on industrialization, investment promotion, and the expansion of productive sectors.

According to Jay Kumar Ghimire, Secretary at the Ministry of Industry, Commerce and Tourism, the province is giving special emphasis to industrial investment and tourism promotion. He said the government plans to organize an investment summit in the current fiscal year 2083/84 after a similar event could not be held last year due to various reasons.

The province also plans to identify and upgrade tourism destinations, promote agro-based industries, develop industrial villages and industrial estates, support small and medium-sized enterprises (SMEs), improve border trade management, and provide administrative facilitation for investors.

Former Vice-Chairman of the Madhesh Province Policy and Planning Commission, Dr. Bhogendra Jha, said an investment conference could play a vital role in creating a more attractive investment climate. However, he stressed the importance of turning investment commitments into actual projects, simplifying legal and administrative procedures, and maintaining regular dialogue with the private sector.

He noted that expanding production, industry, trade, and the service sector is essential for increasing the province’s GDP, adding that economic activity remains the foundation of Madhesh’s long-term prosperity.

According to the Nepal Rastra Bank’s Madhesh Province Economic Activities Report, Nepal’s GDP for fiscal year 2081/82 is estimated at Rs. 6.107 trillion, while Madhesh Province’s GDP is projected at Rs. 804 billion. The report forecasts national economic growth of 3.99 percent, compared to 3.88 percent for Madhesh Province.

The report further shows that agriculture, forestry, and fisheries contribute 36.70 percent to the province’s economy, making them the largest economic sector, while mining and quarrying account for only 0.15 percent. Per capita GDP in the province is estimated to reach US$932.

Agricultural production has also improved, with food and cash crop output increasing by 14.01 percent, vegetable and horticultural production rising by 9.79 percent, milk production up by 3.16 percent, egg production by 9.64 percent, and fish production by 5.95 percent. However, the report notes declines in fruit, spice, and meat production.

The study, based on data collected from Saptari, Siraha, Dhanusha, Mahottari, Sarlahi, Rautahat, Bara, and Parsa districts, provides an in-depth assessment of Madhesh Province’s economic performance, challenges, opportunities, and future outlook.