Economy

China overtakes India to become the largest FDI source for Nepal 

• China has overtaken India to become the largest contributor of Foreign Direct Investment to Nepal over the first six months of the current fiscal year, underlining the rising Chinese economic presence — and strategic influence — in the country.

• Investment from China reached $174 million between July and December, accounting for over 60 per cent of the total FDI commitment.

• This marked a three-fold rise from the same period in the previous 2011-12 fiscal year, where Chinese investment reached $55 million.

• Since last year, China “has begun to surpass the investment from India” into Nepal. While India was the biggest source of FDI during the 2011-12 fiscal year, investment from China rose the following year to account for 31 per cent of total foreign investment.