Industrial Sector-Performance and Emerging Challenges

Only when Nepal's borders were opened to the outside world in 1951 did the country start to industrialize. The first primitive industries were in agro-processing (grain husking, oil seed extraction, jute processing, tea production, and lumber milling), which were later joined in the 1960s by the production of basic construction materials and some import alternatives for goods like beverages, cigarettes, textiles, agricultural tools, furniture, and household implements.

The export-focused carpet and clothing sectors, as well as a mining sector that was predominantly centered on magnetic extraction, all emerged in the 1970s and 1980s. In the 1990s, industries like electronics, electrical equipment, construction, food processing, cement, sugar, and power generation had particularly strong industrial expansion. Less than 10% of Nepal's GDP is now contributed by the industrial sector.

The Nepalese economy's structure is currently shifting more heavily toward the service sector. Hotel, travel, tourist, banking, financial services, insurance, entertainment, education, healthcare, and consulting achievements have experienced remarkable expansion in recent years. The service sector's contribution to GDP has grown dramatically. The potential for value creation in this industry is essentially limitless. Given that just 15% of the population lives in urban regions and that the service sector's contribution to GDP is expanding, it seems likely that income is being transferred in favor of urban residents. 14 percent of the GDP is made up of the service industry.

The impact of the general economic news on consumer spending, raw material costs, and investment choices causes every company to be concerned. But some elements are more crucial to a specific business or functional area than others. For example, a workshop owner or adapter would place great weight on the size and growth pattern of the number of automobiles in a city, but a toy manufacturer would have no interest in such information. Similar to this, a pencil or pen manufacturer would be curious to know the trend in student enrollment.

Agricultural Sectors-Performance and Emerging Challenges

The major industry and the foundation of the Nepalese economy is agriculture. For the majority of people in the nation, it is their primary source of income. In especially for agro-based and food processing sectors, agriculture is a significant supply of raw materials. To hasten the development of the agricultural sector, the government created the Agricultural Perspective Plan (APP) in 1995. Also contributing significantly to the nation's exports is agriculture. Therefore, agriculture has a big impact on Nepal's export and manufacturing industries. There have been calls for a technology-based green revolution that focuses on high priority inputs. The aims at the following tactics, among others:

• Increasing crop intensity,
• Diversity crop pattern,
• Introducing high-value crops,
• Making available rural credit especially to women,
• Constructing rural roads (agricultural roads), and
• Improving the delivery system for irrigation, fertilizer, seeds and pesticides.

Nepal relies primarily on the rain for agriculture despite having abundant water supplies since it lacks suitable irrigation systems. The current challenges for agricultural growth include providing sustainable and long-term solutions to issues like inadequate availability of improved fertilizers, seeds, and germicides, inadequate access to agricultural credit and technical services, and a lack of agricultural infrastructures like agricultural roads, storage facilities, and agro-markets. As a result, over the course of the year, the productivity of fruits, vegetables, milk and milk products, poultry, tea, fish, and cash crops has been steadily rising. The market for these products has expanded dramatically as a result of rising population and income levels, urbanization, a rise in tourists and visitors, export possibilities, and the expansion of processing industries. Thus, these agricultural and forest goods benefit from Nepal's competitive advantage. A strain, meanwhile, is placed on agriculture by Nepal's higher agricultural processing costs when compared to those of India.

The most significant cereal crop is rice. A little more than 1 million tons of rice were produced worldwide in 1966; by 1989, that number had increased to more than 3 million tons. Rainfall variations were a major cause of variation in rice production, but overall, rice production had increased as a result of the adoption of new agricultural practices and the expansion of arable area. 3.9 million hectares of land were being used for paddy production in 1988. In Nepal, a large portion of the population dedicates their life to growing rice. In 1966, about 500,000 tons of corn, the second major food crop, were produced. Corn production had increased to over 1 million tons by 1989.

Wheat, millet, barley, and coffee were additional food crops, although they made a negligible contribution to the agricultural industry. In the early 1970s, increased cash crop production predominated in an effort to promote new industries. The production of tobacco and sugarcane both increased significantly between the 1970s and the 1980s. Since 1980, the production of potatoes and oilseeds has grown moderately. On the slopes of the Himalayas, medicinal herbs were grown in the north, but production growth was constrained by ongoing environmental degradation. Government figures show that although milk, meat, and fruit output had increased, it was still some time before the majority of people had access to food that was nutritionally balanced. Furthermore, as of 1989, the increased output of meat and milk had fallen short of expectations. More over 50% of the population of Nepal is employed in agriculture. In 1988–1989, food grains accounted for 76% of all crop production. Despite unfavorable weather and a shortage of agricultural supplies, particularly fertilizer, there was a 5% rise in production in 1989–1990. In fact, production levels were frequently impacted by extreme weather variations. Production increased through the 1980s in part because of the workforce's higher productivity (approximately 7% over fifteen years); other increases were brought about by increasing land utilization and favourable weather conditions. According to Statistical Information on Nepalese Agriculture (2008/2009), only 65.6% of people depends on agriculture and 21% of the land is cultivated, whereas 6.99% of the land is uncultivated.

There are thousands of agrobusiness companies in Nepal that deal with the provision of inputs, processing, transportation, storage, wholesale, and other related activities. As a result, the agriculture industry is particularly important to the Nepalese business community.

References

• context.reverso.net/перевод/английский-русский/a+more+prominent+place+in
• fomecd.edu.np/upload/BBM 6th Sem Syllabus 2016.pdf
• hrtmcc.org/admin/uploaded/report/word/28.doc
• worldbank.org/depweb/beyond/beyondco/beg_09.pdf