Economy

Nepal's Industrial Capital

From the first jute mill in 1936 to a Rs 152 billion investment summit — the economic engine of eastern Nepal.

300+
Industries in Corridor
20,000+
Industrial Jobs
Rs 152Bn
Investment Committed
1936
First Industry Est.

The Sunsari-Morang Industrial Corridor

Nepal's industrialization formally began in 1936 with the establishment of the Biratnagar Jute Mill — the country's first large-scale industrial enterprise. Since then, Biratnagar and its surrounding areas have developed into the densest concentration of manufacturing outside the Kathmandu Valley.

The Sunsari-Morang Industrial Corridor, stretching from Biratnagar through Duhabi to Itahari, is the backbone of eastern Nepal's economy. Landmark establishments like the sprawling 136-acre Biratnagar Jute Mill, Shivam Cement, and the Himalayan Snax Foods processing plant employ over 20,000 residents, flanked by over 300 medium and small-scale industries.

Key Industries & Business Houses

Leading business groups have driven continuous investment in the region's industrial base.

Manufacturing

  • Jute processing & textiles
  • Iron & steel production
  • Cement manufacturing
  • Plastic & packaging factories
  • Noodles & food processing

Agro-Processing

  • Rice mills & grain processing
  • Refined & mustard oil production
  • Biscuit & confectionery (CG, Kabara Group)
  • Tea processing (from Ilam & Jhapa)
  • Sugar production

A Strategic Trade Gateway

Biratnagar's location just 6 km from the Indian border at Jogbani makes it one of Nepal's most critical trade corridors. The Biratnagar Customs Point (Rani Bhansar) is the second busiest transit point on the India-Nepal border, with tens of thousands of people crossing daily for commerce and tourism.

In January 2020, the Rani Integrated Check Post was jointly inaugurated by Indian PM Narendra Modi and Nepal PM KP Sharma Oli. Built with Indian assistance of $19.64 million, the facility houses modern customs, immigration, border security, warehousing, and quarantine facilities to streamline cross-border trade.

The Jogbani-Biratnagar Rail Link, an 18.6 km freight corridor inaugurated in June 2023, further strengthens trade connectivity. In November 2025, India and Nepal amended their bilateral Treaty of Transit to allow containerized and bulk cargo to move seamlessly via this rail line from the ports of Kolkata and Visakhapatnam to Biratnagar — a game-changer for Nepal's import logistics.

Koshi Province Investment Summit 2025

May 1-2, 2025 — Biratnagar

Koshi Province hosted its first-ever Investment Summit on May 1-2, 2025, in Biratnagar. Inaugurated by then-Prime Minister KP Sharma Oli, the summit showcased 71 large-scale projects valued above Rs 100 million across eight key sectors, resulting in MOUs for 46 projects worth Rs 152.16 billion.

12
Industrial Projects
10
Tourism Projects
9
Infrastructure
8
Agriculture

Entrepreneurship Ecosystem

New initiatives are nurturing the next generation of entrepreneurs and diversifying the economy beyond traditional manufacturing.

Invest in Koshi Province

Explore investment opportunities across tourism, agriculture, industry, energy, infrastructure, and IT.

Visit Koshi Province Investment Authority