E-Paper
From tragedy to transformation: India and Nepal's shared future
This article is authored by Shishir Priyadarshi, president, Chintan Research Foundation, New Delhi.
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As Nepal grapples with the aftermath of a devastating natural disaster, immediate priorities are rescue, relief and rehabilitation. The tragedy is a brutal reminder of how vulnerable Himalayan communities are to extreme natural events, with roads, bridges, power facilities and communications networks devastated within hours.
India–Nepal are not merely neighbours. They share rivers, mountains, borders, communities and, in moments of crisis, a common vulnerability. Once the immediate crisis passes, a larger question emerges: How can India and Nepal build a relationship that not only generates greater prosperity in normal times, while creating resilience when disaster strikes?
Conversations about India-Nepal economics typically focus on trade, investment, infrastructure and energy. But another partnership awaits; one based on young people, technology, skills, entrepreneurship and innovation. Technology can help communities anticipate disasters, governments respond faster and businesses recover quicker. It can also create a more diversified, resilient and opportunity-rich economy.
Nepal has roughly 30 million people and a young workforce. India has become a major technology and innovation hub, with over 200,000 startups recognised under Startup India. The opportunity, isn’t simply to help more Nepalis find jobs--it’s to ask whether India and Nepal create an ecosystem enabling young people to build companies and technologies together.
Demographics alone don’t create prosperity; young people need skills, technology, capital and market access. For Nepal, this urgency is visible in one statistic: remittances equal roughly a quarter of GDP--reflecting how much of Nepal’s human capital creates value abroad rather than at home. Remittances remain vital, but Nepal's next growth phase must create more opportunities domestically, which also builds resilience when infrastructure is disrupted.
The digital economy has changed how integration works. A young entrepreneur in Kathmandu can now develop products for Delhi customers or work with Mumbai investors. Physical distance matters less than before. Innovation isn’t only about breakthrough technology; for developing economies, widespread adoption of existing technology can be equally transformative. AI can help a manufacturer manage inventory, a farmer make better decisions with market data, or a tourism business market globally. In disaster-prone Nepal, the same tools support forecasting and early warning.
India and Nepal should pursue two strategies: Frontier innovation (AI, research, new digital businesses) and technology diffusion (bringing proven tools to small businesses, farmers, entrepreneurs) the latter may have broader impact. A Nepali start-up, needn’t see India only as an export market, rather it could be part of its ecosystem, with mentors in Bengaluru, investors in Mumbai, and partners in Hyderabad, while the company itself stays rooted in Nepal. Nepal doesn’t need to replicate India’s institutions; it can connect to India’s ecosystem while building its own strengths.
Cross-border payment arrangements already show what digital integration can achieve. The next step is moving from payments for tourists to infrastructure for entrepreneurs which will enable businesses in Kathmandu to find customers, receive payments, access cloud services, and raise capital across borders with minimal friction. This also builds resilience: when physical connectivity fails, digital connectivity keeps information and economic activity moving.
Governments typically measure success by jobs created and people trained. But another question matters just as much: How many young people have been enabled to create jobs for others? One entrepreneur can create hundreds of jobs and an entire ecosystem of suppliers and skilled workers.
This requires sharper skills development, i.e. not certificates, but capabilities companies will pay for. India and Nepal should deepen cooperation in AI, data analytics, cybersecurity, digital finance, renewable energy, and technologies suited to Himalayan risks: Disaster forecasting, satellite monitoring, and early-warning systems.
The private sector should lead, since businesses best understand future skill needs. Capital matters too. Many entrepreneurs lack not ideas but risk capital at the right stage. An India–Nepal innovation platform could connect venture capital, companies, universities and startups around skills, capital, technology and market access.
The tragedy Nepal has endured is a stark reminder that development can no longer be measured by growth rates alone. In an era of climate volatility and increasingly frequent natural disasters, resilience must become a core measure of progress. For Nepal, this means rebuilding not only damaged infrastructure but also strengthening the systems that support communities, businesses and livelihoods. Digital connectivity, resilient infrastructure, early-warning systems, new technologies and a more diversified economy can all become part of the country's long-term resilience.
For India and Nepal, this should be a moment to deepen cooperation. The Himalayas bind the two countries not only through geography and history, but also through shared environmental risks. Rivers and mountains do not recognise national borders. Nor do floods, landslides and other natural disasters. The greatest shared asset of India and Nepal is not merely geography or history. It is their young people. If those young people can be connected to skills, technology, capital and markets, the economic relationship between the two countries could undergo a profound transformation. The next generation of India and Nepal has an opportunity to build companies together, create technologies together and generate prosperity together.
(The views expressed are personal)
This article is authored by Shishir Priyadarshi, president, Chintan Research Foundation, New Delhi.
