New Delhi, Feb 28 (.) Dr Shankar Prasad Sharma, Ambassador of Nepal to India, called for a ‘tech upgrade’ in the bilateral relationship, describing technology as an important frontier where an “Aspirational Nepal” and a “Rising India” can further collaborate.
While delivering his keynote address at ‘Nepal-India Tech Forum 2026’ hosted by PHDCCI here, Sharma urged Indian IT giants to explore Nepal as a promising investment destination, highlighting the country’s digital evolution from its first IT policy in 2000 to the National AI Policy 2025 and the broader ‘IT Decade Vision.’
The Ambassador noted that Nepal has built meaningful Digital Public Infrastructure, including data centres, digital payment systems, and citizen platforms, with support from India and multilateral agencies.
Producing over 10,000 ICT graduates annually, Nepal has built a strong talent base, though retaining skilled professionals remains a challenge.
He outlined the government’s FASG Framework – Foundation, Access, Skills and Growth – as a structured roadmap for inclusive digital transformation, with AI Excellence Centres planned across four provinces.
He said Indian companies such as Infosys already operate in Nepal’s banking sector and pointed to opportunities in cloud computing, fintech, cyber security, and AI as future growth areas.
Munu Mahawar, Additional Secretary (North) at the Ministry of External Affairs, reaffirmed India’s commitment to fostering deeper tech-driven ties.
He underscored the Government of India’s commitment to foster deeper tech-driven ties with Nepal.
He reflected how India-Nepal border regions have seen the positive infrastructural drives like Integrated Check Posts (ICPs), petroleum pipelines, improved transits and trade facilitations and their multiplied impact on economies both sides. He reassured India’s commitment for shared peace and prosperity with Nepal.
“Technology sits at the heart of deepening Nepal–India cooperation. India prioritises sharing its technological capabilities with neighbours, recognising that Global South challenges demand scalable, common solutions. UPI-Nepal payment integration, operational since 2024, has already processed over a million transactions, with peer-to-peer remittances nearing launch” he said.
Talking about startup space, he noted that many Nepalese startups participated in IIT-based programme with nine receiving investment and incubation offers.
Additionally, digital solutions are now being layered across trade facilitation, rail, agriculture, health and energy sectors with technology embedded in virtually every bilateral MoUs. Also, deep educational exchanges further strengthening the bilateral partnership and building shared human capital for long-term digital collaboration.
Manjeev Singh Puri, Chair, India-Nepal Centre, PHDCCI & India’s former Ambassador to Nepal, said “India’s rising global stature in AI and advanced technology presents a significant opportunity for Nepal. Nepalis hold a unique advantage deep cultural familiarity, personal networks, and a growing presence in India’s tech hubs like Bangalore and Hyderabad.”
“In today’s AI era, success depends not on scale alone, but on language, data, and innovation. Nepal’s size is no disadvantage — quality talent and the right ideas level the playing field, as demonstrated by Nepali professionals who contributed to the US pandemic response from Kathmandu,” Puri added.
Shekhar Golchha, former President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said Nepal’s macroeconomic fundamentals remain strong, with foreign exchange reserves covering nearly 20 months of imports, moderate inflation and stable interest rates.
However, insufficient job creation continues to push youth abroad. Technology, he said, offers a transformational opportunity, especially as Nepal moves towards becoming power-surplus through renewable hydropower, positioning itself as an energy-efficient destination for data centres and digital infrastructure.
He said the private sector has set a target of building a USD 100 billion economy by 2030 through governance reforms and deeper India–Nepal collaboration. With 70 per cent of Nepal’s trade linked to India, the partnership is indispensable.
Proposing bold institutional integration, he suggested the possibility of establishing an IIT campus in Kathmandu as a symbol of next-generation cooperation built on innovation and intellectual collaboration.
Sushil Gyewali, CEO of the Investment Board Nepal (IBN) extended an invitation to Indian IT majors, AI investors, cloud providers and data centre leaders for long-term partnerships.
He positioned Nepal as a clean-energy digital infrastructure destination in South Asia and said the country aims to shift from migration-driven growth to innovation-led employment. . SAS KK