Market Intelligence
Information and Communication Technology Financial Services South Asia Nepal Export Potential Trade Opportunities

Nepal Information and Communications Technology

Nepal’s growing Information and Communications Technology (ICT) sector offers significant opportunities for U.S. companies. The government’s focus on digital transformation and the rise of indigenous Nepali tech firms is driven by the country’s young, talented, and growing population that offers  opportunities for U.S. hardware, software, and ICT enabling providers (e.g., data centers) to help advance Nepal’s ICT sector.

Key areas with U.S. export potential include:
1. Digital Infrastructure: Developing telecom towers, fiber optic networks, 5G, and data centers to improve data storage, management, and processing, and enhance internet access.
2. E-Government & Digital Services: Implementing smart governance platforms, biometric systems, and citizen service portals.
3. Cybersecurity: Providing security software, infrastructure, audits, and regulatory compliance support.
4. Cloud Computing & Data Services: Offering cloud hosting, Software as a Service (SaaS), disaster recovery, and localized cloud platforms.
5. EdTech and E-Learning: Developing e-learning tools, LMS platforms, online certification, and virtual classrooms.
6. Fintech and Digital Payments: Implementing mobile wallets, cross-border remittance capabilities, and KYC (Know Your Customer) and AML (Anti-Money Laundering) software.
7. Green ICT and Sustainability Tech: Developing energy-efficient data centers, solar-powered and enabled ICT devices, and low-power electrical networks.

Nepal’s new IT/ICT ordinance, issued on January 13, 2025, introduces major reforms to strengthen the sector. It permits Nepali IT/ICT firms to establish subsidiaries or branch offices abroad and invest overseas with approval from the Ministry of Communications and Information Technology and Nepal Rastra Bank. The ordinance allows up to 100% Foreign Direct Investment (FDI) in Nepal’s ICT sector, removes  investment caps in Special Economic Zones (SEZs), and offers sector-specific incentives, such as  tax breaks and streamlined licensing.

The reforms also enable Non-Resident Nepalis (NRNs) to invest in Nepal’s ICT sector, launch businesses, and contribute knowledge and capital inflows. Additionally, foreign investors can invest in Nepali capital and venture funds through technology transfer (in-kind investment) and foreign investment funds.  

To enter the Nepal market, U.S. companies can facilitate their market entry by  partnering with reliable ICT experts familiar with the local business landscape. Success in the market requires ample strategic planning, thorough due diligence, and regular follow-up with business partners, licensees, and engagements with prospective and existing customers.

The U.S. Commercial Service, New Delhi, India and U.S. Embassy in Kathmandu, offer customized solutions to help U.S. businesses compete and win in the Nepal market. For more information regarding upcoming events and opportunities in this sector, U.S. firms can contact the U.S. Commercial Service in New Delhi, India or reach out to your nearest local U.S. Commercial Service office in the U.S. in your state.