The industry sector in Nepal is very undeveloped. Early industrial ventures, spurred by domestic shortages in the 1930 and 1940, fared badly due inexperience. By 1960 there were 63 registered industries,unsupported by adequate institutional organization or infrastructure. With the influx pf foreign aid targeted at both the industrial sectors and the transport and communications infrastructure, a mix of modern industries and cottage industries slowly developed, numbering 3,557 institutions by 1997. they are small by international standards. Industrial activity, accounting for about 21 percent of GDP, employs only 3 percent of the population. most of these industries are located around urban centers such ads the Kathmandu Vally and in the Terai region.
Nepal suffers from a lack of both internal external investment. This stems from low domestic savings, a small domestic market, a severe shortage of skilled labor, chronically corrupt and inefficient public administrations, high transport and operating coasts, the inadequacy of power resources and, increasingly, political instability. There have been recent attempts to encourage investment and privatization through the industrial policy 1992 and foreign investment and one window policy 1992, and the creations of industrial centers with government land and buildings on lease for private ventures.
We have to give priority for national goods for national industries development .
