Nepal’s industrial evolution, particularly in Madhesh Province, is marked by both challenges and opportunities. The region faces infrastructure deficiencies, political instability, bureaucratic hurdles, and a shortage of skilled labor. Land acquisition and a mismatch between education and industry needs further complicate industrial growth. However, Nepal’s strategic location near major markets like India and China, coupled with its young, trainable workforce, offers substantial potential. The country’s upcoming graduation from Least Developed Country status in 2026 presents opportunities for greater access to global markets and investment, although it also poses risks related to the loss of preferential treatment. Learning from global industrial leaders, Nepal must focus on policy consistency, infrastructure upgrades, skill development, and technology adoption. Strengthening public-private partnerships and increasing investment in research and development are key to fostering sustainable industrial growth and positioning Nepal competitively on the global stage.