Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Table 1.8Export Potential compared to Socio-Eeconomic Impact19 Export Potential Goods and ServicesExport PotentialLow Medium HighTeaHandmade paper Wool products TourismMedicinal herbsLabour servicesHighGingerPashmina productsHoneySilver jewelryIT and BPO servicesHydro-electricityLarge cardamomLentilsIron and steel productsMediumSocio-Eeconomic ImpactHealth services Engineering services Instant noodlesEducation servicesLowSource: Chapter 2Table 1.8 suggests that, with the exception of health or education services, the 17 other sectors have eithermedium or high export potential or medium or high socio-economic impact or both. The fact that the health andeducation services rank lower in the analysis does not necessarily mean they lack potential. The four indexestend to favour short-term rather than long-term prospects from the point of view of Nepalese exporters.Certainly, education and even more so health services are fast-growing export businesses worldwide andcan have a high employment and income effect on the exporting country. So, the finding simply says thatconditions do not exist as of yet in Nepal to turn those two sectors into strong export potentials in the shortterm.To make sure that the potential export sectors identified are not constrained by current critical resourcesbottlenecks, the team working on the assessment of those export potential sectors also carried out a quicksurvey of water and electricity dependency of the 19 sectors. See table 1.9.With the exception of iron and steel products and hydro-electricity, the 17 other export potentials have limitedimpact on those two resources, ranging from medium to mostly low. The dependency of hydro-electricity onwater is not necessarily a negative development as water reservoirs can also help address irrigation needs.Clearly, lack of water is not an issue in Nepal. The issue is proper distribution for consumption and irrigationpurposes.12NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT