Janakpurdham, July 19: Madhes Province, which contributes 13 percent to gross domestic product (GDP), has forwarded plan to increase the contribution by spurring economic activities. Expansion of economic activities, production growth and encouragement to investment by private sector are given top priority for it.
Irrespective of having adequate natural resources, fertile agricultural land, abundant labour force and potential for cross-border trade, the economic potential of the province is yet to be unlocked. Considering this, the government has forwarded the programmes to expand productive sectors along with industrialization and investment promotion.
Secretary at the Ministry of Industry, Commerce and Tourism in the Madhes Province, Jaya Kumar Ghimire, informed that tourism promotion was laid special emphasis along with expansion of productive sectors so that province could boost its share to country’s GDP.
“We have accorded priority to investment promotion in the industry, trade and service sectors in the province,” he said, adding that although a budget was allocated for conducting an investment summit in the last fiscal year, 2082/83, it could not be materialized owing various reasons.
The province is unable to increase GDP unless adequate investment is poured in industry and business. So, the government has planned to organize an investment summit in the current fiscal year 2083/84.
He further shared that programmes will be launched to identify and upgrade the touristy areas in order to attract more tourists.
Development of industrial infrastructures, establishment of industries based on agricultural produce, promotion of small and medium enterprises, management of trans-border trade and guarantee of administrative facilitation to investors are other plans the province government has paid heed.
Modernization of agriculture, expansion of irrigation, development of industrial villages and industrial zones, tourism promotion, creation of investment-friendly legal atmosphere and partnership with the private sector were imperative to stimulate economic activities, according to secretary Ghimire.
Former vice-chairman of the Madhes Provincial Policy and Planning Commission, Dr. Bhogendra Jha, said the schemes such as Investment Summit would play an instrumental role in creating an investment climate in the province.
Investment commitments must not be limited to paper/document but translated into action, while simplification of legal and administrative processes for industrial operations with regular discussion with the private sector are equally awaited, he added.
Jha argued once the production, industry, trade and service sectors witness expansion, the economic size of the province evidently sees increase.
A ‘Report on Economic Activities of Madhes Province’ unveiled by Nepal Rastra Bank last October stated that national GDP in the fiscal year, 2081/82 was estimated to be Rs 6.1 trillion at consumer prices, while the GDP of Madhes Province is estimated to be Rs 804 billion. While the national economy was estimated to increase by 3.99 percent during the same period, the economic growth of Madhes Province was projected to be 3.88 percent.
Madhes Province has fertile land, especially for paddy production, while milk, egg, fish, fruits and vegetable are other productions. #nepal #rss
