Bagmati Province contributes approximately half of Nepal’s gross domestic product (GDP) from the service sector.


Approximately half of all transactions in Nepal’s service sector place in Bagmati Province, which includes the country’s Federal Capital, Kathmandu, as well as other nearby regions.

A study done by Nepal Rastra Bank (NRB) found that Bagmati Province generated 46.7 percent of the country’s GDP (measured at current prices) in 2020/21, primarily from profits from the service sector. Because of a significant increase in transactions in the real estate and transportation industries, the service sector’s shares have risen significantly.

According to the National Statistical Bureau, Bagmati Province contributed Rs 1.604 trillion to the country’s gross domestic product (GDP) during the previous fiscal year. At a time when Karnali Province contributed only four percent to the national GDP, the province’s contribution to the national GDP was approximately 37.7% of the national GDP.

While Bagmati Province contributed 16.8 percent to agriculture, it contributed 30.5 percent to manufacturing during the time under consideration. Agricultural productions have declined as a result of a reduction in agricultural area due to urbanization growth, according to the research.

Producing food crops decreased by 0.7 percent, while the area of agricultural land decreased by 0.2 percent, over the time period under consideration. A mere 4.2 percent of the total loan amount went to agricultural in the province, while 37.7 percent of the total loan amount went to manufacturing companies.

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