<figure><img width="3024" height="4032" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101140/636b75c39c7e80680e062405jpeg.jpg" alt=""/><figcaption>Author Joy Ma.</figcaption></figure>Besides bad food, heat and boredom, what William Ma remembers about the Deoli concentration camp is the parrots. Ma was just eight when his family was rounded up from West Bengal along with 3,000 other Chinese Indians and transported by train to a former POW camp in Rajasthan. The 1962 war between India and China had just ended, and they were to be imprisoned in the camp for five years. The parrots used to flock to neem trees in Deoli, and Ma remembers thinking: “Even the parrots have more freedom than us.”  William’s grandfather worked in the tea gardens of Hasimara in West Bengal, and cleared the forest during World War II to build an air force base that is still in operation. His father was born there and later moved to Kalimpong where William’s mother’s side of the family was involved in the Tibet trade.There was no school in camp, so William and his brother Lynden were taught by their father, who made them memorise the Oxford English Dictionary. Another boyhood memory of William’s is the camp loudspeaker playing the sad Bollywood song Bees Saal Baad over and over again, as if to send the message that the inmates had no future.  Read also: <a href="https://archive.nepalitimes.com/article/business/squeezed-in-the-himalaya,3824" target="_blank" rel="noopener">Squeezed in the Himalayas</a>, Sean ShoemakerThe prisoners were released in phases. Some were sent to China where many of them had never been before, and did not even speak the language. Others returned home to Calcutta to find their houses and businesses looted or taken over. Most then migrated to Canada, Australia or the United States. William found a job in Nepal’s nascent trekking industry, and moved up to Kathmandu from Calcutta with his family. His sister Joy, born during the family’s detention in Deoli, has now co-authored a book with Dilip D’Souza. The Deoliwallahs: The True Story of the 1962 Chinese-Indian Internment documents the stories of some families, including her own. As a young reporter on the tourism beat in Kathmandu of the early 1980s, for me William was a trusted source of news. But over the 40 years I have known him, he never once mentioned his family’s imprisonment in Deoli. I found out about it only after reading his sister’s book for this review.I asked William this week why he never told us about the internment. “After enduring, overcoming and surviving all that, many of us do not want to remember and relive the past. We want to embrace the future,” he replied. “My Dad was psychologically scarred by the shock of being treated as an enemy by his own country even though he did nothing wrong.”Even now, half a century later, many Deoliwallahs do not want to rake up the past. But some have begun to speak out and to document the injustice before memories fade and the older generation passes on. Joy Ma, who now lives in California, said in an email: “I found it very difficult to tell the story because every time I brought it up I saw how much pain it caused my family and the people I knew. The breakthrough for The Deoliwallahs was that it is the story of a community. It was a terrible shared experience that they had survived and it was time the world heard about it so it won’t be repeated.” The British first brought Chinese people to India to plant tea in Assam in the late 18th century, and others fled prolonged war and poverty to settle in Penang, Singapore, and Calcutta. By 1947, there were some 200,000 Chinese in India with businesses spanning tea, tanneries and timber.   The brief Sino-Indian border war had already ended when Chinese families were rounded up in Calcutta, Darjeeling and Assam and brought to Deoli. Like Joy Ma’s book, <a href="http://archive.nepalitimes.com/blogs/kundadixit/2017/08/07/the-guilt-of-freedom/" target="_blank" rel="noopener">Yin Marsh’s Doing Time with Nehru</a> documents the physical hardship and psychological mistreatment in the camps, which has strong parallels to the internment of American Japanese after Pearl Harbour.Marsh was 13 when she was imprisoned with her family. Like William, she moved to Kathmandu after being freed. There are others like Wong Shiao Leung, whose family was also in Deoli and left Calcutta <a style="background-color: #ffffff; font-size: 15px; letter-spacing: 0.01em;" href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Chinese-shoemaker-Kathmandu,4030" target="_blank" rel="noopener">to set up a shoe shop in Bag Bazar in Kathmandu.</a> Read also: <a href="https://archive.nepalitimes.com/article/Nepali-Times-Buzz/Chinese-shoemaker-Kathmandu,4030" target="_blank" rel="noopener">Kathmandu's sole</a>, Shreejana ShresthaThere is a larger underlying lesson for the present day from this dark chapter of Indian history. The unwillingness of the Indian state to acknowledge the injustice, and its lack of remorse means this could happen at any time against any other minority. And in fact, it is now happening with the CAA and NRC. For the imprisoned and their families, an apology from the state would bring some kind of closure. Co-author Dilip D’Souza describes former Deoli prisoners travelling by bus from Ottawa to Toronto in 2012 after the Indian High Commission refused to accept their letter demanding an apology from the Indian government, singing in pure Hindustani, Ajeeb Dastan Hai Yeh. He writes: “It is easy to say that such an incarceration can’t happen in 21st century India. . . then in 2019 the National Register of Citizens raised just this spectre.The DeoliwallahsJoy MaDilip D'SouzaPan Macmillan, 2020198 pagesRs1,040 <img width="640" height="958" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101140/636b75c89c7e80680e062406jpeg.jpg" alt="">Read also: <a href="http://archive.nepalitimes.com/news.php?id=18812#.XlegkiEzbIU" target="_blank" rel="noopener">When Wen?</a>, Nepali Times

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Righting the wrongs done to India’s Chinese

<img src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109101140/636b75829c7e80680e0623f2jpeg.jpg" alt="" width="2048" height="1365"/>Nepal’s Communist Party leaders must take note of two events that unfolded in India this week: <a href="https://www.bbc.com/news/world-south-asia-51638345" target="_blank" rel="noopener">the roaring welcome to US President Donald Trump</a> and the ongoing communal riots in Delhi’s northeastern suburb.That the Narendra Modi government was able to put up a great two-day show to woo Trump, who repeatedly praised Modi and said “America loves India” has been somewhat overshadowed by the violence that has claimed over 20 lives in Delhi.The two events depict contrasting pictures: one of a new emerging India eager to engage with superpowers, even taking lead in issues of international concern. And the other of an India engulfed in violence between some Hindus and Muslims. The ruling BJP and Modi, supported by the right-wing groups like RSS and VHP, find themselves in the vortex of this violence.Trump reached India on Monday and along with Modi addressed the ‘Namaste Trump’ rally in Ahmedabad’s Motera Stadium, the largest cricket stadium in the world, attended by over 100,000 people. The two presented their visions for the next phase of Indo-US strategic partnership.Although the much-awaited trade deal did not happen, the two sides pulled together a $3billion military deal, sought commitments to fight terrorism, narco-terrorism and organised crime and signed three MoUs in the health and oil sectors. Trump even discussed the importance of a secure 5G network in India, ahead of trials involving China’s Huawei which he said must be “a tool for freedom, progress, prosperity, not a conduit for suppression and censorship”.Important for Nepal to note is their dialogue in security cooperation. Besides reiterating that the two countries will work to combat “radical Islamic terrorism” which will dearly affect the functioning of SAARC, Trump praised the military cooperation and said that the US and India, along with Japan and Australia, should work together for security of the Indo-Pacific region as the Quad (Quadrilateral Security Dialogue) grouping.The diplomatic and military arrangements of the Quad are widely viewed as a response to the rapidly increasing economic and military power of China in the region. Sandwiched and landlocked between India and China, Nepal will have to <a href="https://www.nepalitimes.com/here-now/nepal-now-has-to-balance-not-just-india-and-china-but-also-the-west/" target="_blank" rel="noopener">balance its relations between China and a US-backed India</a>.As it is, a $500 million US-funded <a href="https://www.nepalitimes.com/latest/mcc-row-damages-nepals-credibility/" target="_blank" rel="noopener">Millennium Challenge Corporation</a> (MCC) deal to improve Nepal’s connectivity <a href="https://www.nepalitimes.com/editorial/a-millennium-challenge/" target="_blank" rel="noopener">is in limbo</a> because of opposition from a faction of the ruling Communist Party that sees it as a part of the American Indo-Pacific Strategy. Parliamentary ratification of the project has been delayed.The MCC is viewed with much interest by India’s civil society and academia lately, and is seen as a direct counter to China’s Belt Road Initiative (BRI). Sections of the Nepali establishment views India as an obstructionist power, and are trying to develop closer ties with China.But India is finding more grounds of convergence with the US, which now views South Asia as a vital part of its <a href="https://www.nepalitimes.com/editorial/between-two-oceans/" target="_blank" rel="noopener">Indo-Pacific Strategy</a>. Smaller countries in India’s periphery are bound to be trapped in this rivalry. With pressing domestic concerns at home over opposition to <a href="https://www.nepalitimes.com/latest/indian-nepalis-alarmed-by-citizenship-amendment-bill/" target="_blank" rel="noopener">the Constitution Amendment Act (CAA) India </a>may play silent and quiet diplomacy leaving the US and China to compete for influence in India’s neighborhood.Trump and Modi are said to have discussed developments in South Asia at length during this visit, meaning they will collaborate and closely consult each other on regional matters. Nepal must gear up to deal with a more forceful America in the near future even when it is already grappling with <a href="https://www.nepalitimes.com/banner/what-is-xi-jinpings-big-surprise/" target="_blank" rel="noopener">a dominant China</a>.It is in India’s advantage if the US temporarily fills the vacuum in Nepal, which New Delhi feels is its traditional sphere of influence. So, the <a href="https://www.nepalitimes.com/editorial/a-yam-between-3-boulders/" target="_blank" rel="noopener">foreign policy challenge for Nepal</a> will not be to balance between India and China so much anymore, but getting into meaningful dialogue with China and the US to protect its national interest.India considers the US as its ‘natural ally’. The Modi-Trump equation seen in Gujarat and Delhi this week speaks volumes of their friendship and desire to foster closer ties between the world’s oldest and largest democracies. Even in midst of communal riots in Delhi, Trump stated at a press conference “it is up to India” to deal with the CAA matter, quickly adding that Modi is committed to “religious freedom in India.”Most analysts conclude that if Trump is re-elected in November elections, India’s relations with the United States could be further strengthened.The author is a Nepali journalist and researcher based in New Delhi.

The India, US, Nepal, China quadrangle

It is only April, and Himalayan expeditions are already making rotations to acclimatise on Annapurna and Dhaulagiri, and will soon be making summit pushes.&nbsp; On Mt Everest, Icefall Doctors are fixing ropes and ladders into the Western Cwm as international climbers arrive at Base Camp. Spring 2026 is going to be the busiest and most crowded so far in the Nepal Himalaya. The main reason is that China has closed expeditions from the north side for eight-thousanders Everest and Cho Oyu, and also Xixapangma.&nbsp; The closure is informal, from what one can make out. The Chinese have not put out any official statement, but there are no permits either. The reason seemingly was the ‘Rising Dragon’ firework display last September by pyrotechnic artist Cai Guo-Qiang near Xigatse.&nbsp; Working with outdoor wear company Arc’teryx, Guo-Qiang set off an impressive sequence of orange and white fireworks that wound up a mountain. The spectacular display was criticised for damaging the fragile ecology of the Tibetan Plateau. But this cannot be the only reason the north side is closed. Experienced Everest blogger Alan Arnette anticipates that about 125 climbers will shift to the Nepal side of the mountains, and expects there to be up to 900 summits this spring — up from the highest spring number so far of 876 climbers on top in 2019.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082.jpg" data-media-id="editor_0" data-image-id="20260404050428_8c31812bf38f699c4faa74f25814a6ddaee397f71a629e549023f29250f05082" data-rendition-name="original" width="1500" height="1000" loading="lazy" alt="mountaineering"> <figcaption>Photo: KARMA TENZING</figcaption> </figure>  The early Base Camp arrivals are having problems with their first rotations because of heavy snow this season. Unlike previous springs, this year has seen back-to-back blizzards at high altitudes since February. The increased snow load on the slopes have increased avalanche danger right across the mountains.&nbsp; There has been an increase in numbers on Everest despite the West Asia war, flight disruptions, LPG shortage and new regulations. The permit fee has gone up for the first time since 2015 from $11,000 to $15,000 this year.&nbsp; The Tourism Bill passed by Nepal’s Upper House last year would have required climbers to have first summitted a 7,000m peak in Nepal before attempting Everest. However, the Department of Tourism has confirmed that there are no new experience requirements this season. Some want this rule changed to include 7,000m peaks anywhere in the world. That could be one reason people are rushing to climb Everest before the Nepal government changes its mind and enforces the new regulations on prior experience on Everest. “It’s probably going to encourage a lot of people that simply are not ready to go,” reckons Alan Arnette. “Once again, we may see a lot of inexperienced people on the mountain trying to get in before the rule comes into place, if it does.”&nbsp; Arnette has always been sceptical of Everest regulations, and points out many instances where rules have been announced but not implemented over the ten years that he has been tracking them. For example, a helicopter ban to Everest Base Camp was announced last year, but rescinded. A rule requiring climbers to bring down waste was never seriously enforced. Since there is so much money involved for the government and for the operators, any any rule that would reduce revenue is never fully implemented. This year there is another ‘High-Altitude Trash Quota’ rule requiring climbers and guides operating above Camp 2 to collect and bring down at least 2kg of waste from the higher camps.&nbsp; The Nepal government has tried to diversify peaks on offer by reducing the royalty on climbs, but the draw of Everest, Annapurna and other eight-thousanders seems to be too great. Even when the permit fees for some remote peaks like Kangri Shar, Himlung and Api, were reduced to $400, there are few takers.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d.jpg" data-media-id="editor_1" data-image-id="20260402120436_a90cd44858e97086f773aa1fbd592b3434bb07d89cd4a1843b2ca32a84e7c72d" data-rendition-name="original" width="1500" height="1125" loading="lazy" alt="Photo Damien Francois"> <figcaption>Photo: DAMIEN FRANCOIS</figcaption> </figure>  TIME LAPSE Clients and expedition operators have been trying to shorten the time needed to complete an Everest expedition from the city of origin to the top and back. Since Nepal has no rules about spending a certain number of days in acclimatisation, this has allowed some expedition organisers to use new technology.&nbsp; Austrian operator Lukas Furtenbach last May led a group of four British ex-military clients to the summit within a week of leaving London. This climb was scrutinised because the group had practiced breathing xenon gas, a substance that increases the count of red blood cells and is banned in competitive sports. The climbers had also trained for months at home in hypoxic tents, and used supplemental oxygen during the actual climb.&nbsp; The success of that expedition prompted an investigation by Nepal’s Ministry of Culture, Tourism, and Civil Aviation, but there was nothing it could do because the team had taken the xenon in Germany two weeks before their trip. But even if they had administered the gas in Nepal, it would technically not be illegal. Furtenbach is firmly in favour of speed, and of using the gas. “The only reason why we are working with xenon is to make climbing safer, to protect climbers from high altitude sickness,” he says, arguing that the less time climbers spend on the mountains, the less their exposure is to disasters, sickness, and they also generate less trash.&nbsp; His firm, Furtenbach Adventure, offers a three-week Everest South Flash expedition, at a cost of €100,000, using custom oxygen systems. Other expeditions take up to two months.&nbsp; A young American duo of Ryan Mitchell and Justin Sockett got to Everest Base Camp five days ago. They are preparing for an oxygen-free summit attempt.&nbsp; ‘ Being around these mountains for one day has already brought me so much joy. Every time I come back to the Khumbu I feel more familiar and connected,’ posted Mitchell. He and Sockett have since summitted Lobuche East (6,119m) as they continue to acclimatise and wait for the Khumbu Icefall route to be fixed.&nbsp; There are other sans-O2 trips planned this climbing season in Nepal. Norwegian Kristin Harila, the fastest in the world to climb all 14 8,000ers (in 92 days), is attempting the Nuptse, Lhotse, and Everest three-peak climb without supplemental oxygen. American Tyler Andrews and Ecuadorian Karl Egloff are continuing their race to break records in Everest. While Andrews is attempting the Fastest Known Time from Base Camp to the top without oxygen, Egloff is taking it a step further and going for a round trip: from Base Camp to the summit and back in record time.&nbsp; Both Egloff and Andrews had attempted these climbs in 2025 spring, but abandoned around 7,000m due to bad weather.&nbsp; Kami Rita Sherpa wants to extend his all-time record of total Everest summits to 32, while Kenton Cool from England is chasing 20, a non-Nepali record.&nbsp; The first summits of the season will be in late April, or early May depending on weather. Besides Everest, there are a lot of interesting climbs on lesser known peaks.&nbsp; The Japanese trio of Masayuki Takenaka, Tatsuro Sugimoto, and Ryota Nomura, for example, are attempting the unclimbed Jarkya Himal (6,473m) near Manaslu. &nbsp;&nbsp; <h2>Fake rescues</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6.jpg" data-media-id="editor_2" data-image-id="20260402120436_600c0176e24327fd3dfcfd634e4b871f3e5314aa00eb4885ad137ac6f9c4a3b6" data-rendition-name="original" width="800" height="519" loading="lazy" alt="Fake rescues"> </figure>  This year’s spring climbing season has coincided with Nepal’s new government taking action against alleged perpetrators in fake rescues and insurance fraud. The Central Investigation Bureau (CIB) has already arrested more than a dozen trekking agency executives, hospital managers and helicopter company executives for medevac insurance fraud. Climbers are known to fabricate medical emergencies, get flown down from as high as Camp II on Everest, and then submit false insurance claims.&nbsp; Sometimes one flight is made to look like many using fake invoices. Trekking companies are also involved in fake rescues of hikers who just get tired of walking.&nbsp; Too many fake claims could lead to insurer’s losing confidence in the industry, and increased premiums, leading to delayed responses in real accidents.&nbsp; As a result of the scandal, there is now more scrutiny from the government about rescues. Already, helicopter operators have to wait for permission before carrying out rescues while their application is vetted.&nbsp; The worry is that this could cause unnecessary delays when time is of the essence in mountain rescue. Already, medevacs are delayed because of the bureaucracy needing permits to fly to sensitive regions bordering China. Last year, a climber died on Himlung because helicopter rescue took too long while operators ran from door to door in Kathmandu to obtain necessary permits. <h2>Mingma David Sherpa, MP</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25.jpg" data-media-id="editor_3" data-image-id="20260402120432_05c1600440327f4ae4bcae641b634714951f45702080a88d4e2628587190aa25" data-rendition-name="original" width="960" height="958" loading="lazy" alt="Mingma David Sherpa"> </figure>  Meet Mingma David Sherpa, Nepal’s first mountaineer to be nominated to Parliament. Sherpa is a self-made professional climber from Rolwaling, who rose up from an expedition porter to a record-breaking mountaineer and expedition organiser. As an insider, he is now in a position to streamline laws related to Nepal’s trekking and mountaineering sector. He is co-owner of EliteExped with Nims Purja, and in 2021 the two were part of a team of Nepali climbers to be the first to make it to the top of K2 in winter, the second highest mountain in the world in Pakistan.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54.png" data-media-id="editor_4" data-image-id="20260402120432_c4ec586e7a27b09a72e61925a3897d843f864563d9e82a3fd3e25293e22cbe54" data-rendition-name="original" width="2082" height="1396" loading="lazy" alt="Mingama David Sherpa"> </figure>  Mingma David was also on Purja’s Project Possible to climb all the 14 eight-thousanders in six months, shattering the previous record of seven years. He was featured in Purja’s documentary 14 Peaks: Nothing is Impossible.&nbsp; At age 30 he became the youngest climber to reach the top of all 14 eight-thousanders for which he was awarded the Piolet d’Or. Mingma David has taken part in dozens of successful rescues of fellow climber, including the highest ever long-line rescue on Dhaulagiri and saving the life of fellow-climber from 8,600m on Everest. <h2>April Fool</h2>  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4.jpg" data-media-id="editor_5" data-image-id="20260402120432_775afff27d4a2889a60730aa25bbc5f8eb8ea343528c8c031a6febbfd74814c4" data-rendition-name="original" width="1365" height="1820" loading="lazy" alt="Furtenback Adventures"> </figure>  The Austrian expedition outfitting company Furtenbach Adventures spoofed the anticipated crowds on an April First post on social media this week, showing ‘a fully galvanized, weather-resistant steel staircase, complete with a sturdy handrail’ to make the Hillary Step bottleneck on Mt Everest less dangerous.

Nepal Himalaya Spring 2026

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Creating a firm future for Nepal

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