The growth in the service sector is in dire need of a sustainable base to enable it to expand further

The service sector in Nepal is showing robust growth over the years. This sector contributed 51 per cent to the gross domestic product (GDP). However,  economists are of the view that this growth cannot be sustained unless we see more growth in the manufacturing and agricultural sectors too.

The service sector has been growing over the years. The major service sector industries include tourism, transport, communications, construction and the financial sector. But the performance of the manufacturing and agricultural sectors has been dismal although they have the potential of performing better. Although most developed countries had witnessed agricultural and industrial revolutions in the past Nepal has not seen them as a result of which they have not been exploited although Nepal has the potential to do so.

Compared with India and China, the agricultural productivity of Nepal is very low. For instance, while China and India produce as much as 11 tonnes and four tonnes of rice per hectare, respectively, Nepal produces only a meager 2.5 tonnes per hectare.

Were Nepal to increase its agricultural productivity it  would have to enhance growth by creating a ground for suppliers of agriculture inputs. This is regarded as service. The growth of the service sector is linked with the agriculture and manufacturing sectors which implies that it is essential that these sectors should also be boosted so that the service sector sees healthy growth.

It should be realised that as Nepal’s service sector growth depends largely on the agricultural and manufacturing sectors due emphasis should be given to them. If we are able to increase productivity in agriculture this would assist growth of agro-processing industries such  as the service sector as well. As Nepal has not been able to realise its true potential in agriculture and the industrial sectors, this has led to the service sector being a major contributor to the economy.

The growing decline in the agriculture and manufacturing sectors is something to ponder about as we have not been able to exploit the huge potentials that lie in these sectors. As per the figures made available by the Central Bureau of Statistics, the contribution of agriculture to the GDP was 35 per cent in the fiscal 2001-02 while at present it is about 28 per cent.

The case is similar with the industrial sector in Nepal whose contribution has dipped to around five per cent this fiscal year. It was nine per cent in 2001-02. As the service sector is largely supported by imports its growth would not be sustainable if this continues. Therefore, there is little room to boast about the increase in the service sector considering that we are faring very poorly in the agricultural and industrial sectors.

The growth in the service sector is in dire need of a sustainable base to enable it to expand further.

With the service sector emerging as the main contributor to the economy of the country, it should receive due attention for its further expansion would not be possible without a vibrant growth in the agricultural and industrial sectors as well.

Ayurveda medicine

Ayurvedic medicine gets the least priority compared with modern medicine or Allopathic drugs and treatment methods. It is largely because of apathetic attitude of the government, universities and research centres.

Developed thousands of years ago when Allopathic medicine was in a nascent stage Ayurveda medicine has proved its niche in treating some of the diseases that are not cured by modern medicine which has side effects and its efficacy becomes ineffective when overused.

Being situated in the foothills of the Himalayas, Nepal can excel in Ayurvedic medicine provided that the government and universities give priority to its development along with modern technology applied in the Allopathic medicine.

Ayurvedic medicine is basically based on herbal plants and practice of moderate lifestyle. Researchers have proved that there are numerous herbs that contain properties required for the development of modern medicines. Only thing to make this traditional medicine affordable is to make enough investment on its research and universities should also set up a faculty so that enough human resources can be produced as has been done in the case of modern medicine.

Sanskrit University, for example, can be one of the institutions that can play a lead role in this regard.