Reform #12: Support Local Production and Innovation
Reduce import dependency by supporting local businesses through public-private investment funds, tax incentives, supply chain help, and university partnerships.
Nepal imports too much and produces too little. Local businesses face high costs, bureaucracy, and unreliable energy, while farmers lack legal protection and market access.
- 1Create Industrial Growth Fund that invests in local companies with private partners
- 2Give tax breaks to companies that meet local content and employment targets
- 3Help farmers with forward purchase agreements and quality grading centers
- 4Fund university-industry research projects through competitive grants
- 5Ensure transparent, competitive selection for all support programs
Malaysia achieved 7.3% annual GDP growth through coordinated public investment
Chile diversified beyond mining through upstream/downstream industrial linkages
OECD analysis shows conditional incentives work better than unconditional ones
Months 1-6: Set up Industrial Growth Fund and design tax incentive framework
Year 1: Make first investments, pilot raw material programs
Years 2-3: Scale successful models, evaluate performance, optimize systems
50% increase in local content of manufactured goods within 5 years
200 new manufacturing jobs per 10 crore fund investment
30% increase in university-industry collaborative projects
25% reduction in key raw material import dependency
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