Nepal's Manufacturing Economy Shrinks as Service Sector Grows

Nepal's manufacturing economy appears to be shrinking. According to the Nepal Rastra Bank's latest macroeconomic report, the industrial sector, which accounted for 15 percent of the gross domestic product in fiscal year 2014/15, has shrunk to 12.8 percent by 2024/25.

However, the service sector has grown from 54.7 to 62 percent. According to World Bank data, the share of manufacturing industries has declined from 9.03 percent in 1996 to 4.37 percent in 2024. The world average during this period was 12.37 percent. Remittances reached Rs. 17.23 trillion in the last fiscal year, which is 28.6 percent of the gross domestic product.