The Policy Research Institute conducted a field study to identify the strategic direction for industrial development in Nepal.

April 27 – May 16, 2025
Districts covered: Sindhuli, Dhanusha, Morang, Sunsari, Jhapa, Ilam, Kathmandu, and Lalitpur

The Policy Research Institute (PRI), Center for Economic and Infrastructure Policy, has launched a research project titled “A Strategic Direction for Industrial Development in Nepal.” This study examines the opportunities and challenges associated with the development of agriculture, non-timber forest products (NTFPs), handicrafts, and natural resource-based industries. The primary goal is to determine a strategic direction for industrial development in Nepal during the post-neoliberal and post-COVID-19 era, with a focus on the growth of these sectors. As part of this research, PRI’s Economic and Infrastructure Development Unit carried out field studies in the Bagmati, Madhesh, and Koshi Provinces, covering several municipalities in Sindhuli, Dhanusha, Morang, Sunsari, Jhapa, Ilam, Kathmandu, and Lalitpur districts.

The research team engaged extensively with stakeholders, including federal, provincial, and local government officials, industry experts, farmers, entrepreneurs, representatives from the private sector, and leaders from various types of cooperatives. The team conducted 28 Key Informant Interviews (KIIs) and organized 11 Focus Group Discussions (FGDs), involving a total of 211 participants.

Key Field Activities:

Field Activities:

• In Sindhuli, a discussion took place at the Community Forest Office in Khaniyakhark with citrus farmers, processors, and cooperatives to explore the history, current challenges, and future prospects of the Junar (citrus) processing industry.
• In Dhanusha, an interactive session at Rajarshi Janak University focused on the promotion of Mithila art industries. Women entrepreneurs, artists, journalists, and academics shared challenges related to market access, institutional support, and intellectual property protection.
• In Sunsari, two discussions were conducted at the Regional Agricultural Research Center in Tarahara. Discussions with agricultural scientists on crop-based industries highlighted the prospects and problems of research and development in the agricultural sector. Discuss with livestock experts highlighted the feasibility, problems, and prospects of meat-based processing industries.
• In Morang, the study team interacted with members and officers of the Morang Chamber of Commerce and Industry in Biratnagar to understand broader industrial challenges. Additional discussions at the Purbanchal University explored how academia can contribute to industrial growth and skilled workforce development in Nepal.
• In Jhapa, a dialogue was held with representatives of agricultural and non-agricultural cooperatives at the office of Jhapa District Cooperative Union in Birtamod, Jhapa, focusing on their role and challenges in agri-industrial promotion. The team also visited local entrepreneurs involved in betel nut and bamboo-based craft industries.
• In Ilam, two focus group discussions were held at the Suryodaya Municipality office in Fikkal—one with municipal officials and another with cooperative representatives. These discussions highlighted local efforts and institutional coordination to promote agro-processing-based industries, particularly tea and cardamom.
• In Kathmandu, the team conducted a focus group discussion with technical and administrative staff at the office of the Department of Mines and Geology to explore the potential and regulatory bottlenecks of mineral-based industries. We also had a key informant interview with officers of Dhaubadi Iron Company Limited, focusing on the problems and prospects of the development of domestic resource-based iron and steel manufacturing industries.

In conclusion, the intensive field visit provided invaluable firsthand insights into the diverse landscape of Nepal’s potential industrial sectors. The extensive engagement with a wide range of stakeholders, through key informant interviews and focused group discussions, generated a deep understanding of the challenges, opportunities, and local dynamics within agriculture, NTFPs, handicrafts, and natural resource-based industries. The experiences and data collected during the field study will be instrumental in shaping the evidence-based recommendations of the background paper, ultimately contributing to a more robust and sustainable Industrial Development Strategy for Nepal.

Report Prepared by: Maheshwar Giri (Associated Research Fellow, Policy Research Institute)

FGD Venue and participants:
Office of the Community Forest, Khaniyakharka, Sidhuli (14 participants)
Rajshree Janak University, Janakpurdham, Dhanusha (26 participants)
Regional Agriculture Research Center, Tarahara, Sunsari (14 participants)
Regional Agriculture Research Center, Tarahara, Sunsari (14 participants)
Federation of Industries and Commerce, Biratnagar, Morang (10 participants)
Purbhanchal Univeristy, Biratnagar, Morang (13 participants)
Purbhanchal Univeristy, Biratnagar, Morang (20 participants)
Jhapa District Cooprative Ltd., Birtamod, Jhapa (26 participants)
Suryodaya Municipality, Fikkal, Ilam (27 participants)
Suryodaya Municipality, Fikkal, Ilam (26 participants)
Department of Mines and Geology (21 participants)

Key Informant Interviews:
Rukumaya Thapa (Farmer/Entrepreneur, Kaniyakharka, Sindhuli)
Sunil Kumar Jha (Senior Officer, Janakpur Sub-Metropolitican city)
Jay Kumar Ghimire (Secretary, Ministry of Industries, Commerce, and Tourism, Madesh Province)
Ajit Kumar Mahato (Official, Ministry of Industries, Commerce, and Tourism, Madesh Province)
Abhinav Anshu (General Manager, Janakpur Women Development Center)
Chattu Prasad Gupta (Entrepreneur, Bijay Peda Bhandar, Barmajiya, Saptari)
Ramdev Mandal (Farmer: Mango, Rupnagar municipality-9, Saptari)
Narayan Prasad Lamichhane (Manager, RKG Group: Arihant Multiple Fiber, Biratnagar, Morang)
Umesh Khadka (Lecturer, Janata Multiple Campus, Sunsari)
Mohan Poudel (Chairman, Deviyaan Community Forest management Committee, Morang)
Bhim Bhadur Khatiwada (Lead farmer: Betel nuts, Arjundhara-10, Jhapa)
Hari Krishna Gupta (Trader: Betel nuts, Arjundhara-10, Jhapa)
Lila Kumar Khatiwada (Farmer: Betel nuts, Arjundhara-10, Jhapa)
Sunil Shivakoti (Manager, Sundar Aadhunik Krishi Sansar, Birtamode, Jhapa)
Manohar Kumar Pradhan (Entrepreneur, Sibham Bet Bash Udhyog, Kakadbhitta, Jhapa)
Raju Sunuwar (Farmer: tea, cardamon, Amrisho, Fikkal, Ilam)
Tulu Tamang (Enterpreneur, Lucky Dairy Pvt. Ltd, Fikkal, Ilam)
Nawakul Sharma (Custom Officer, Pashupatinagar Custom Office, Illam)
Shivalal Pradhan (Entrepreneur, Koseli Lollipop Udhyog, Fikkal, Illam)
Ghanshyam Prasain (Entrepreneur, Himalayan Lush Industries Pvt. Ltd., Budhabare, Jhapa)
Ujjwal Adhikari (Maharanijhoda Sailage Udhyog, Maharanijhoda, Jhapa)
Goma Devi Bista (Vice-Chairman, Maharanijhoda Sana Kisan Krishi Shahari Sasthi, Maharanijhoda, Jhapa)
Nikhil Kattel (Technician, Maharanijhoda Sana Kisan Krishi Shahari Sasthi, Maharanijhoda, Jhapa)
Sanchita Thapa Magar (Joint-Secretary, Sindhuli Kala Ghar, Sindhuligadi, Sindhuli)
Sankhar Pandey (Chairman, Federation of Export Entreprenuer Nepal, Lazimpat, Kathmandu)
Dr. Janak Bahadur Chand (Chief Executive Officer, Dhaubadi Metal Company, Lainchaur, Kathmandu)
Dr. Ganesh Aire (Entrepreneur, Janesh Hemp Pvt. Ltd., Budhanilkantha, Kathmandu)
Dharma Raj Shakya (Secretary, Handicrafts Association of Nepal, Patan Industrial Area, Lalitpur)

Study team:
Dr. Kalpana Khanal (Senior Research Fellow)
Dr. Niranjan Devkota (Research Fellow)
Dr. Pradeep Panthi (Research Fellow)
Maheshwar Giri (Associated Research Fellow)
Satish Sapkota (Intern)