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4. Maintains Trade Balance

The industrial products produced in a large scale can be exported to the foreign
counties. It increases the earnings of foreign currencies. Imports decrease and the
country can have positive trade balance. It decreases the trade deficit.

5. Agricultural Development

Many agricultural tools, fertilizers, chemical fertilizers and other necessary
equipment for agriculture are produced in industries which help to enhance the
yielding. As a result farmer’s living standard can be improved as well as more
agricultural raw materials can be supplied to the agro-based industries.

6. Increase in National Income

Industries pay huge tax to the government which can use in any
development work.
Possibilities of Medium and Large Industries in Nepal

Raw materials can be obtained from foreign and agricultural products.
The natural beauty, swift flowing rivers and possibility of adventurous activities
like Bungee Jumping, Rafting, Cannoeing, etc.
The utilization of mineral resources available in the country can help in the
development of such industries.
Increase in remittance and growing interest of people for investment also can
help in the development of industries.
The changing system of vocational and technical education, interest to be an
entrepreneur and increase policy of government for foreign investment can also
support the development of industries.

Problems and Solutions to Medium Scale and Large Scale
Industries

Very less establishment of industries also couldn’t show any tremendous progress in
the field of industries. Some of the major problems existing in industries in Nepal are
given below:

1. Lack of Capital

A large amount of money is required to establish medium and large scale industries
but the Nepalese people do not have enough money to invest on such industries.

2. Lack of Raw Materials

Such industries required enough raw materials which are not available
sufficiently in the country. Moreover, heavy tax has to be paid to the government.

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