Nepal to build four new economic zones on the borders with India and China

Nepal plans to build two cross-border economic zones on the border with India and two on the northern border with China as part of the effort to develop economic corridors that will connect the two immediate neighbors.

Preliminary works have started for the construction of Dodhara-Chandani economic zones in Kanchanpur and Jogbani in Morang which will be connected to economic corridors in India, said the Ministry of Industry, Trade and Supplies. Construction work is expected to start in fiscal year 2021-22. Industry Secretary Chandra Kumar Ghimire said construction of cross-border economic zones will be initiated by mutual understanding with China and India to boost trade and investment.

We have had discussions with the two countries and hope that the construction of these vital projects According to the Trade and Export Promotion Center, Nepal’s total exports to China amounted to 1.91 billion rupees, while imports amounted to Rs 181.9 billion in the last fiscal year. Nepals exports to India amounted to Rs70. 11 billion in the last fiscal year, while imports from the southern neighbor have been valued at Rs735.3 billion. “Potential construction site in Korala has been identified, but we are still looking for a suitable place in Kimathanka,” Ghimire said. We have held talks with China on these issues.

The available land in Kimathanka is small and narrow, but the proposed site in Korala looks feasible, officials said. Side of the Nepalese border. According to ministry officials, 500-600 bigha of land are available in Jogbani, while the cross-border economic zone at Dodhara-Chandani will be built in the area where the dry port is expected to be built. Una Once the cross-border economic zones are built, they will attract investment for large and mediumsized factories from domestic and international investors, Ghimire said.It will create a huge number of jobs, he added. In November last year, a high-level delegation led by Minister of Industry Lekh Raj Bhatta and Secretaries of Industry Chandra Kumar Ghimire and Baikuntha Aryal and a technical team made a field visit to Dodhara- Chandani to study the possibility of building a cross-border economic zone.

Nepal is targeting Mumbai as a transit point for third country trade and has started to build a dry port in Dodhara-Chandani, on the western border with India , which offers the shortest route to the sea. provide access to Indias largest seaport, Jawaharlal Nehru port in Mumbai, and facilitate Nepal’s foreign trade and reduce costs, officials said .

The Ministry of Industry, Trade and Supply has started to explore possible sites for the dry port of Mayapuri and Gaurishankar The manufacturing sector currently accounts for around 5 percent of Nepal’s gross domestic product. “We expect that once the cross-border economic zones are developed, its contribution to the countrys GDP will double,” Ghimire said. Largescale industrial development is lagging behind in the far west region, and construction of the cross-border economic zone will contribute to the industrialization of the province, insiders said.

Once the infrastructure is brought online, it will pave the way for foreign trade and investment in the far west and allow it to connect abroad, they said. Nepals total foreign trade for the last fiscal year was 1.29 trillion rupees. Among the country’s 154 trading partners, India accounts for the largest share of exports and imports. In the last financial year, 62.22 percent of all Nepalese foreign trade was done with India. China is Nepal’s second largest trading partner. The northern neighbor accounts for 15.20 percent of Nepal’s imports, but only a small part of its export trade.

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