Socioeconomic Survey

Industries
Industry: economic activity concerned with the processing of raw
materials and manufacture of goods in factories
Industrial Sector Some Comparison
• The industrial sector is a wider term as compared to
the manufacturing sector, since manufacturing is a part
of industry as a whole. Whereas the manufacturing sector involves
processing of goods majorly, over where conversion happens, raw
material getting converted to finished products.
How can industry be classified?

• There are four types of industry. They are primary, secondary, tertiary
and quaternary.
• Primary industry involves getting raw materials e.g. mining, farming
and fishing.
• Secondary industry involves manufacturing e.g. making cars and steel.
• Tertiary industries provide a service e.g. teaching and nursing.
• Quaternary industry involves research and development industries
e.g. IT.
Classification based on investment
• Micro enterprise- annual transaction less than 20 Lakhs
• Traditional and other cottage industries 20 lakhs to 5 crore
• Small scale industry (up to 50 million).
• Medium scale industry (50 – 150 million).
• Large scale industry (more than 150 million).
Structure of Nepalese Industrial Sector
• 1. Manufacturing Industries : Industries which produce goods by
utilizing or processing raw materials.
• 2. Energy-based industries : Industries generating energy from water
resources, wind, solar, coal, natural oil, gas, etc.
• 3. Agro-based and forest-based industries : Industries based on
agriculture or forest products.
• 4. Mineral Industries : Mineral excavation or processing thereof.
• 5. Tourism Industries : Tourist lodging, motel, hotel, restaurant, resort,
travel agency, etc.
Structure of Nepalese Industrial Sector
• 6. Service Industries : Workshop, printing press, consultancy service,
cold storage, nursing home and like.
• 7. Construction Industries : Road, bridge, railway, tunnel, industrial
commercial and residential complex construction and operation.
• 8. Information and communication industries
• 9. Export oriented industries
Government Owned Industry Nepal
• There are seven Public Enterprise(PEs) in Industrial Sector,
• Dairy Development Corporation
• Herbs Production and Processing Company Ltd.,
• Hetauda Cement Industry Ltd.,
• Janakpur Cigarette Factory Ltd.,
• Nepal Aushadhi Ltd., Udayapur Cement Industries Ltd.
• Nepal Orind Magnesite Pvt. Ltd.
• Among them, 6 PEs are in operation except Janakpur Cigarette Factory Ltd.
• The operating income of PEs in this sector has increased by 17.3 percent in FY 2016/17
• However, the operating income of Diary Development Corporation and Herbs
Production and Processing Company Ltd. has declined by 3.9 and 5.4 percent
respectively.
Performance of the Industrial sector
• Capital Investment: it is one indicator of the performance of
industrial development. By mid-feb. 1014/15, the highest capital
investment is found in energy sector was 54.8% followed by
production oriented sector 21.2% and service sector 10.8%.
• Employment Generation: largest employment generation is
production oriented industries with 55.7% followed by service 20.8%
and tourism sector 10.0%
Performance of the Industrial sector
• Foreign investment: By mid feb. 2016 total 3,520 industries from 86
different counties have been registered securing foreign investment of
more than Rs. 1.89 trillion
• Capacity utilization: by first six months of FY 2014/15 the average
capacity utilization of the industrial sector is 51.3%, with tea
industries 93.4% and lowest 13.4% rice industry.
• Contribution to GDP: it is decreasing, 16.08% in 2006/07 to 13.43% in
2015/16
• Growth rate: it was 4.0% in 2006/7, reached 6.2% in 2013/14, 1.5% in
1014/15, projected -6.3% in 2015/16.