There are several ways to make economic progress in federalism in Nepal:
Encourage private sector investment: The government can create a business-friendly environment by reducing bureaucratic hurdles, simplifying regulations, and providing tax incentives to attract private sector investment. This can lead to increased economic activity, job creation, and higher GDP growth.
Develop infrastructure: Developing infrastructure, such as roads, bridges, airports, and ports, is crucial for economic development. It will not only connect people and businesses across the country, but it will also reduce transportation costs, making Nepal more competitive.
Promote tourism: Nepal has tremendous potential for tourism, with its natural beauty, rich cultural heritage, and adventure sports. The government can invest in infrastructure for tourism, promote Nepal as a destination, and provide incentives to the private sector to develop tourist facilities.
Invest in education and skills training: Nepal needs a skilled workforce to drive economic growth. The government can invest in education and skills training, particularly in sectors that have high potential for growth, such as information technology, tourism, and manufacturing.
Promote export-oriented industries: Nepal has a favorable trade agreement with India, which can be leveraged to promote export-oriented industries. The government can provide incentives to the private sector to invest in export-oriented industries such as textiles, handicrafts, and agriculture.
Strengthen the financial sector: Nepal's financial sector is relatively underdeveloped, which hinders economic growth. The government can promote financial sector development by providing incentives for new entrants, improving regulation and supervision, and increasing access to credit for small and medium-sized enterprises.