With the number of tech startups in Nepal swelling to over 20,000, the country’s venture capital (VC) sector is now a critical part of the economy, and the government has begun to focus on its own sectors.

According to a report by The Hindu, there are currently more than 200 startups in the country.

Among them, many of them have managed to raise over $500 million.

With the new government coming in, a lot of startups are now being incubated and mentored by the government.

One of them is the Kathmandue-based Re-engineering.

Re-engineers have developed software for over two decades that are able to turn an idea into a business, and they have a team of about 20 people.

Their business is selling a line of shoes called Bali’s.

Kathmandu-based company Re-Engineering has recently launched its shoes in Kathua and Bhimber in Kathanga district.

The company has partnered with Kathmanduan clothing retailer Lekpa, who has been supplying its shoes to local brands, including the new luxury brand Handa.

While Re-Logic is a start-up, Re-Bait has been in business for over 15 years, but the startup has only been operating for the last few months.

It was started by former engineer Jitendra Raghu and has offices in Nepal, China and Thailand.

Raghu told Business Insider, “Our product is designed to meet the needs of our customers and the environment, while also being able to offer quality.

The shoes are made from recycled polyester, bamboo, silk, and other materials and we have a zero waste philosophy.

We have partnered with local brands to deliver quality products that are eco-friendly.”

As for the government, they have already invested $100 million into Re-Esteem and the Kathua-based startup has also invested $200 million in its new startup hub, which is a huge step forward for the Nepali startup scene.

ReEsteemed has raised $6 million from investors, including Alibaba, which has already announced a $2.5 billion investment in the region.

Kashmir, meanwhile, is the second most populous country in Nepal with over 20 million people.

The country is also home to the world’s largest Sikh community, and as such, there is a strong demand for a company that could cater to the needs in the Sikh community.

Lalu Shrestha, who is the cofounder of the Bengaluru-based digital agency Digital-India, says the government should be investing in the local talent, especially the youth.

“When the government invested in Re-Seal, it was the only place in the world where Sikh people were able to use technology,” Shresthha told Business Today.

“It’s important to invest in the right sectors, not just the ones with the largest market share.”

Shrestha believes that the government could also look at the local startup scene and build out its own infrastructure.

“The government needs to invest more in the tech industry,” he said.

“The youth is not interested in startups anymore, so the government needs help in creating the right environment for them to start companies.”

This story originally appeared on Business Insider.