Industrial output needs to be increased: Minister Bhandari

By A Staff Reporter,Kathmandu, May 8: Minister for Industry, Commerce and Supplies Damodar Bhandari has said that it is necessary to increase the contribution of the industrial sector to the gross domestic product (GDP) of the country.

Inaugurating the Make in Nepal Swadeshi Summitr-2024 organiseed jointly by Confederation of Nepalese Industries (CNI) in association with the Ministry of Industry, Commerce and Supplies, Minister Bhandari said that there would be no economic prosperity unless the contribution of industries to the economy increased.

“The contribution of industrial sector to the GDP is low. So, it is necessary to promote industries with the cooperation between the government and private sector to increase its contribution to the economy. When the industries flourish, it will create job opportunities and increase the production that will help make the country’s economy self-reliant,” he said.

He emphasised on the need to promote domestic industries based on local resources to increase the production and consumption of local goods.

The contribution of the industrial sector, which reached about 14 per cent in GDP, has now dropped to less than 5 per cent. 

"It is necessary to promote the domestic industry in order to expand trade by taking comparative advantage. Provision will be made in the upcoming budget in this regard. The Ministry is also committed to give high importance to the industry, suggestions have been given to the Ministry of Finance in the same direction and will be given in the future. I will personally take special initiatives for this work,” said Minister Bhandari.

Minister Bhandari stressed that the government should cooperate with the private sector and encourage investment in the industry to increase its contribution. 

He said, "In order to attract foreign investment as well as domestic investment, I want to request the private sector to play an important role in encouraging foreign investors based on the experience of the private sector on how to promote investment in the industrial sector and bring in foreign investors as well."

Appreciating the role played by the CNI for the industrial promotion of the country since its establishment, he thanked CNI for the contribution in facilitating the implementation of the government's policy and increasing the industrial.

Minister Bhandari expressed confidence that the 'Make in Nepal-Swadeshi' campaign, which is being conducted by the CNI in agreement between the government and the Confederation, would prove to be a milestone in developing Nepal as a self-reliant and export-oriented economy.

On the occasion, former vice-chairman of National Planning Commission (NPC) Dr. Biswo Nath Poudel said that guarantee of the availability of raw materials, effective labour policy, capital and market access were basic things for the development of industries.

He said that it was necessary to focus on the promotion of industries based on the locally available raw materials which not only supported for increasing local production, but also making the country’s economic self-reliant.

“Due to investment in hydropower, foreign exchange reserves have also increased. And, if Nepal really wants to produce and sell electricity, it has to negotiate with India. Our market is India, so we have to arrange the conditions for sending it,” he said. 

He said that more attention should be paid to produce skilled manpower saying that in recent times, there was an increase in the number of people looking for entry-level jobs rather than those with skills, and they left after learning to do the job.

President of CNI Rajesh Kumar Agrawal urged the government to maintain limited types of taxes such as income tax, customs, excise duty and value added tax by consolidating the existing types from the coming fiscal year.

"Value addition tax should be made multi-rate (0, 5, 13 and 18) and reducing the minimum transaction limit that should be included in this tax. This will help to make Nepali goods competitive with Indian goods and market prices and also help to control unauthorised trade,” he said.

In Nepal, Nepal Quality Standards of 1150 goods and services have been determined, but usually more than 5,000 items are imported in Nepal, he said, and added that it had made negative effects on the market of domestically produced goods.

In order to build a self-sufficient economy and a production-oriented economy, it is necessary to make our style of consumption of domestic goods by encouraging domestic industrialists.