July 19: The latest study report prepared by the Confederation of Nepalese Industries (CNI) has revealed that there has been a decline in the growth rate of income of the industries. The report contains detailed data on the condition of the manufacturing industry and the service industry during the third quarter of the last fiscal year (FY 2021/22).

According to the report, the production capacity of the business have slumped in the third quarter compared to the second quarter. During the review period, the production capacity of the industries was 66.81 percent against 71 percent in the second quarter.

During the review period (mid-January to mid-March), it was found that the manufacturing industry paid an average of 10.96 percent interest. Such interest was 9.4 percent in the same period of the previous year. Similarly, the service sector industries paid an average of 10.92 percent interest.

The study shows that manufacturing industries borrowed 31 percent of the working capital from banks and financial institutions. In the previous quarter, the industries had borrowed 34.4 percent of the working capital. The report shows that the growth rate of income of the industries in the third quarter compared was 12.82 percent against 27.1 percent in the second quarter.

Among the participants in the study, 81 percent of industrialists said that they are ready for new investments.

The confederation said that the industrial situation report was prepared by focusing on the monetary policy of this fiscal year.

The report was released by Minister for Industry, Commerce and Supplies, Dilendra Prasad Badu on Monday. Unveiling the report, Minister Badu said that such reports will help in portraying the industrial environment of Nepal.

Bishnu Kumar Aggarwal, president of the confederation, stated that there has been a significant drop in market demand and this has reduced the income of the industries. He also informed that for the first time in Nepal, the confederation conducted a survey and published an industrial report on behalf of the private sector.

Birendra Raj Pandey, vice president of the confederation, expressed his opinion saying that the report will help to increase the credibility of the private sector.