Data Supporting the Policy Proposals
- Contribution to GDP: The Information and Communications Technology (ICT) sector is projected to contribute 1.94% to Nepal's GDP in the fiscal year 2024/25. This shows a consistent upward trend, with a revised growth rate of 4.15% in FY 2022/23.
- Export Revenue: The IT sector is a significant source of foreign exchange, with IT service exports valued at approximately USD 515 million in 2022, representing a substantial 64.2% growth since 2021. This demonstrates the global demand for Nepali IT services.
- Startup Ecosystem: Nepal's startup ecosystem is ranked among the top 110 countries globally. The government has allocated NPR 1 billion for the 2024/25 Startup Fund with the goal of incubating 10,000 new enterprises. A key demographic is the high youth involvement, with over 83% of IT freelancers being between 20 and 29 years old.
- Foreign Direct Investment (FDI): While the general FDI threshold is NPR 20 million, a positive step has been the recent simplification of the approval process for investments up to NPR 500 million. However, the IT industry has been exempted from the minimum investment threshold for foreign investors since October 2023, making it more accessible for smaller-scale investments.