How improve Nepal's GDP?

 HOW IMPROVE NEPAL'S GDP?

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GDP is the monetary values of all the goods and service created by the country in the specific time period. The ratio of GDP to the total population of the region is the GDP per capita which is used to approximate the standard of living, and as the measure of the economic progress. 

Nepal, a landlocked country between India and China, whose GDP ranks fifth and second respectively, is the poorest country in South Asian region and 17th poorest in the world. 20.27% of the population still remain below the poverty line as per Fourth Nepal Living Standards Survey 2022-23. Several necessary steps can help to uplift's Nepal's GDP.

* Increase trade: Nepal joined WTO in 2004, and has trade relations with more than 100 countries. But, Nepal has continuously faced the trade deficit.

- proper coordination for implementation of Nepal Trade Integrated Strategy (NTIS) 2023

- improve the quality of the export products and services which has been listed as 32, till 2023

- find alternatives of international support measures, as Nepal graduates from LDC

- find ways to market the product as high value brands

 

* Advantage of globalization: Nepal can find alternatives to promote itself through digital technology for its goods, services, and different sectors,

- digitalization of the different sectors for the rapid functioning of the country's economy

- use the diplomatic policies as the ways of the country's promotion, and value addition towards the local culture

* Strengthen the manufacturing companies: Letting the international companies to built the products within the country to generate national revenue.

-  Create an investor-friendly environment to attract international companies for local manufacturing.

-  Improve industrial infrastructure to support manufacturing growth and competitiveness.

* Enhance the agricultural farming: currently, agriculture's shares in GDP is decreasing, which is 24.1 in 2022/23.

- find the alternative ways to enhance the agricultural productivity 

- Encourage crop diversification and high-value cash crops to increase agricultural output.

* Investment in hydropower energy and water resources: Nepal has formally entered the energy trade with Bangladesh selling 40 MW of eletricity,

- find the ways to sustain this in longer run

- fully work on India's agreement to buy 10,000 MW of electricity from Nepal in the next ten years.

- Nepali people should force for the political will to attract foreign direct in hydro sector

 

* Enhance tourism sector: Among the total number of tourists who visited Nepal in 2022, 64.7 percent of tourists visited for vacation/entertainment/travel (Economic Survey). The average stay of tourists was only 13.1 days, and the  the average expenditure per day per tourist was 40.5 US dollars.

- find the ways to improve the service quality to the foreigners,

- improve the road networks, and work on the safety of internal airlines,

- develop the strong national and local protocol to serve the tourists

-  Develop national and local protocols to highlight Nepal’s unique cultural and natural heritage.

* Proper use of the remittances: Remittances alone hold 20% of GDP in 2021/22

- find the ways to link the remittances to be invested in the public sector, and income generation activity

- Provide incentives for diaspora investments in small and medium enterprises (SMEs).

For the country fully sustain and improve its GDP, political leadership should have the strong willingness to move forward in the process. Political leadership must demonstrate strong commitment, while citizens play a crucial role in driving economic progress. By implementing these strategies, Nepal can transform its economy, reduce poverty, and achieve sustainable growth.