Industry registration declines by 21 percent

Registration of industries has dropped by a whopping 21 percent during the first two months of the current fiscal year compared to the same period last year. Data compiled by the Department of Industry (DoI) shows that 63 industries were registered across the country during the period until mid-September. A total of 80 industries were registered during the same period last year. Officials said overall registration of industries tumbled over the period as investors were reluctant to set up new businesses amid uncertainty over elections to the Constituent Assembly (CA). Registration of service and tourism related businesses plunged significantly during the review period as compared to other sectors. A total of 11 enterprises were registered during the period, down from 21 recorded last year. Similarly, registration under tourism sector also went down to 13 firms during the review period from 19 registered during the same period last year. Energy and manufacturing sectors are also saw a decline in the registration of new ventures. A total of seven and 18 new firms were registered in energy and manufacturing sectors respectively during the period. The number was nine and 19 respectively during the corresponding period last year. Ram Sharan Timoria, spokesperson at DoI attributed the decline in registration to political uncertainty in the country. “As the country braces for fresh elections foreign investors are wary of making investments. Investors might have postponed their plans for investment till the elections,” said Timiria. He, however, said that the data compiled for two months cannot reflect the total picture.The data shows that the capital witnessed rise in the registration of new industries during the period. A total of 42 industries were registered during the period in Kathmandu. This is a 33 percent rise compared to the figures recorded during the same period last year. Similarly, 16 new industries were registered in Lalitpur until the end of second month of the current fiscal year, up by seven industries recorded during the same period last year.