According to a release, trade and industry contributed 14.1 per cent to Nepal's gross domestic product (GDP) in the financial year 2022.
The Asian Development Bank (ADB) has approved a $250 million loan to support India’s National Industrial Corridor Development Program (NICDP).
“This is the first subprogram of the programmatic $500 million loan to develop 11 industrial corridors spanning 17 states. India’s NICDP aims to develop world-class industrial nodes that are supported by efficient urban agglomerations and multimodal connectivity, including international gateways like ports and airports and inclusive, climate-resilient, and sustainable infrastructure. The national program also seeks strong institutional and regulatory frameworks,” an ADB note stated here.
ADB Senior Financial Specialist for South Asia Manohari Gunawardhen said “the assistance complements the government’s ambitious reform agenda to strengthen industrial infrastructure and support the country to boost the competitiveness of its manufacturing sector, increase the share of manufacturing in the gross domestic product, and generate a high level of formal employment,” said a. “Development of industrial corridors will strengthen national supply chains and boost linkages with global value chains.”
The first subprogram loan will help government initiatives strengthen institutional framework and capacity development for industrial corridor planning, improve project readiness, facilitate ease of doing business, and thereby create opportunities for domestic and foreign investors.
India has initiated significant reforms to increase the manufacturing sector’s productivity and competitiveness like streamlined business processes to facilitate private investment, reduced corporate taxes, consolidated labor codes, increased public investment in infrastructure, and approved creation of a new development financial institution. In addition, the government has launched the “Skill India” and “Digital India” programs to attract the youth and create high-value jobs in the manufacturing industry.
India recently upgraded its Industrial Park Rating System (IPRS) to boost industrial infrastructure competitiveness and support policies to enable industrialization across the country.
As part of NICDP, it is also developing guidelines for green corridor frameworks and climate-resilient infrastructure as well as focusing on enhancing skills for the participation of female labor, ADB note further said.