Nepal has an estimated 16,000+ startups, with 125 IT companies newly registered in the past year and delivers 9,000+ engineering graduates annually. A 2023 World Bank report found that nearly 80% of these graduates are proficient in key programming languages such as Python, Java, and JavaScript, which are essential for software development. This talent pool is currently underutilised due to limited access to global markets, weak mentorship pipelines, and strict regulatory frameworks.
Existing infrastructure gaps, low R&D investment and limited market opportunities further constrain Nepali tech startups’ ability to scale and compete globally. However, multiple private stakeholders and government agencies are working to develop an ecosystem that boosts Nepal’s tech profile, offering viable opportunities for the recognition and greater exposure of local talent.
The government is keen to support the tech sector through initiatives such as the National Digital Economy framework 2021, which aims to build efficient digital infrastructure and increase internet penetration, currently at 70% of the population. The National e-Governance Strategy promotes automation and the use of AI in public services to improve transparency. The Digital Nepal framework ensures digital literacy, ICT-led growth, and AI-based innovation across the nation. The Startup Policy and Rules adopted in 2023/24 formally define what constitutes a startup, based on factors such as revenue size, company age, and innovation criteria. The Ministry of Industry, Commerce and Supplies (MoICS) has introduced the Enterprise Enhancement Service Operation and Management Work Procedure 2025, which aims to provide training, guidance, and an ecosystem to support new innovators, in partnership with universities and private-sector bodies. It also chairs the Startup Enterprise Steering Committee, established to facilitate coordination on grants, co-investment, and procurement opportunities for startups.
Technology Adoption & Export Growth
There has been increased adoption of technology across sectors, from digital classrooms, e-tutoring, and skills-based training that bridge resource gaps, to applications such as predicting rainfall patterns, soil analysis, estimating crop yields, fraud detection, and telemedicine. Farmers in Banganga Municipality, Kapilvastu, are using the Geokrishi app to access expert advice on pest control, weather, crop management, and market prices, which has significantly improved productivity. Similarly, the Nagarik app has simplified access to the national ID, driver’s licence, voter ID, passport applications, health insurance cards, and social security funds through a single platform.
IT service exports accounted for about USD 515 million in 2022, with an estimated 66,500 IT professionals working in companies or as freelancers, driven by strong demand for software development, digital marketing and AI. The US, Canada and the UK continue to dominate the outsourcing landscape, while Japan, South Korea and Gulf countries have more recently turned to Nepal for IT talent across healthcare, software development and emerging technologies such as AI.
With the private sector making progressive strides towards technological growth through collaborations with startups, supported by financial institutions via regulated sandboxes, or by partnering with universities through strengthened programmes and established tech firms by mentoring startups on compliance and cybersecurity, all this has given impetus to a widely scalable tech ecosystem in the region.
Nepal’s Emerging International Tech Partnerships
The tech momentum in Nepal has witnessed the rise of diverse innovations and myriad international engagements, highlighting the country’s strategic capabilities. Nepal is exploring global partnerships in various sectors, ranging from ICT and digital infrastructure development under the Belt and Road Initiative with China to the establishment of the UK-Nepal Tech Forum, which focuses on investment, innovation, and digital trade between the two countries.
The India-Nepal Startup Partnership Network (IN-SPAN) is a fine example of cross-border startup exchanges that also fosters strong fintech ecosystems, SaaS development, and talent mobility across borders. Countries like Japan and South Korea are exploring pathways in IT services, health technology, and areas where Nepal’s young engineering workforce can complement the workforce abroad.
Meanwhile, Gulf countries are turning to Nepali IT professionals for digital health systems, e-governance architecture, and smart city solutions, thereby expanding service exports into new geographies. Engagements in cybersecurity, digital governance, and capacity building showcase the shift from traditional aid frameworks to innovation-led cooperation. These global partnerships signal that Nepal is positioning itself as an active player in a connected global digital network, growing on its own strategic terms.
The Path Ahead
The Government of Nepal has declared 2024-2034 the Decade of Information Technology, fuelling the current wave of tech-driven momentum and signalling Nepal’s emergence as a growing tech hub in the region. Pukar C. Hamal, CEO of SecurityPal, emphasises the need to create optimal conditions in Nepal while elevating the visibility of Nepal’s tech capabilities. His brainchild, the “Silicon Peaks” branding, should be understood as an original experiment, shaped by Nepal’s realities and comparative advantages. Anchored in a culture of problem-solving, a steadily growing talent pool, expanding access to venture capital, and a positive policy environment, Nepal is laying the groundwork for a sustainable technology hub. Given Nepal’s strategic position between India and China, it can act as a corridor for talent, ideas, and digital enterprise. The idea of Silicon Peaks reflects a credible pathway for Nepal to integrate into regional and global technology value chains on its own terms.
