Industries are the backbone of economic prosperity, employment generation, and a self-reliant economy. Without industrial development, a country cannot achieve its goals of increasing domestic production, substituting imports, and promoting exports. For Nepal, industrialization is not merely an economic priority but a necessity for sustainable growth. Yet, despite its pressing need, the country has failed to create an environment conducive to industrial expansion. With the formation of the current government, commitments were made to accelerate industrialization and generate employment on a large scale. However, reports of industries shutting down and operational ones struggling to survive have raised serious questions about the government's ability to translate its vision into reality. If industrialization is to become the foundation of prosperity, the government must move beyond ambitious announcements and focus on concrete results.The declining number of new industry registrations reflects the deteriorating industrial environment. Statistics on micro, cottage, and small-scale industries in Lumbini Province offer a representative picture. According to the provincial Ministry of Industry, Tourism and Transport, 10,759 small and cottage industries were registered in FY 2022/23. However, the number fell to 4,254 in FY 2023/24, 3,639 in FY 2024/25, 3,267 in FY 2025/26, and just 2,501 in FY 2026/27. A decline of approximately 77 percent over five years compared with the initial year is not an ordinary fluctuation. It points to serious problems concerning investor confidence, market conditions, and the overall business environment. The declining registrations, from Lumbini's hill districts to its major commercial centres in the Terai, indicate a broader weakening of industrial activity.
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