Nepal

Nepal, a landlocked nation in South Asia, lies between China to the north and India to the south. Known for the Himalayas—including Mount Everest (8,849 m), the world’s highest peak—Nepal is celebrated for its natural beauty, cultural diversity, and religious harmony. Despite recurring political instability and economic challenges, the country’s blend of Hindu and Buddhist traditions, vibrant ethnic mosaic, and resilient people make it one of the most distinctive nations in Asia.

Historical Background

The modern Nepalese state emerged in the 18th century under King Prithvi Narayan Shah of Gorkha, who unified numerous Himalayan principalities into a single kingdom by 1768. Although defeated by the British East India Company in the Anglo-Nepalese War (1814–1816), Nepal retained its independence—one of the few South Asian states never fully colonised—through the Treaty of Sugauli, which also formalised relations with Britain.
Throughout the Rana period (1846–1951), hereditary prime ministers controlled the government while the monarchy remained largely symbolic. In 1951, King Tribhuvan ended the Rana oligarchy with Indian support, inaugurating a constitutional monarchy. However, in 1960, King Mahendra dissolved parliament and introduced the non-party Panchayat system, which lasted until 1990, when the People’s Movement restored multi-party democracy under a constitutional monarchy.
In 1996, the Maoist insurgency began, leading to a decade-long civil war that cost over 13,000 lives. The monarchy suffered a devastating blow in 2001 with the royal massacre, after which King Gyanendra seized absolute power (2002–2006). Mass protests and international pressure forced his capitulation, paving the way for a peace accord in 2006 and the abolition of the monarchy in 2008, transforming Nepal into a federal democratic republic.
A new constitution adopted in 2015 established Nepal as a secular, federal, and parliamentary republic, though political instability has persisted. Recent years have seen frequent shifts in government between the Nepali Congress (NC), Communist Party of Nepal (Unified Marxist-Leninist, CPN-UML), and Communist Party of Nepal (Maoist Centre, CPN-MC). In September 2025, following nationwide protests, Prime Minister K.P. Sharma Oli resigned, and former Chief Justice Sushila Karki was appointed interim prime minister to oversee elections scheduled for March 2026.

Geography and Environment

• Location: Southern Asia, between China and India
• Area: 147,181 sq km
• Borders: China (1,389 km), India (1,770 km)
• Coastline: None (landlocked)
• Terrain: Tarai plains in the south, mid-hills in the centre, and the high Himalayas in the north
• Climate: Ranges from subtropical to alpine and arctic
• Elevation extremes:
  • Highest point: Mount Everest (8,849 m)
  • Lowest point: Kanchan Kalan (70 m)
  • Mean elevation: 2,565 m

Nepal contains eight of the world’s ten highest peaks, making it a global centre for mountaineering and trekking. Its natural resources include hydropower, water, timber, and minerals (iron, copper, cobalt), though much remains underdeveloped.
Land use (2022):

• Agricultural land: 26.1%
• Forest: 41.6%
• Other: 32.3%

Environmental challenges: deforestation, air and water pollution, soil erosion, and high vulnerability to earthquakes, floods, and landslides. Nepal is a signatory to the Paris Climate Agreement and prioritises hydropower and green energy development.

People and Society

• Population (2024): 31.1 million
• Urbanisation: 21.9%
• Capital: Kathmandu (1.57 million, 2023)
• Median age: 27.6 years
• Population growth: 0.7%
• Fertility rate: 1.85 children per woman
• Life expectancy: 73 years

Ethnic composition: Chhettri (16.5%), Brahman-Hill (11.3%), Magar (6.9%), Tharu (6.2%), Tamang (5.6%), Muslim (4.9%), Newar (4.6%), Yadav (4.2%), others (≈38%).
Languages: Nepali (official, spoken by 44.9%), Maithali, Bhojpuri, Tharu, Tamang, and over 120 indigenous languages. English is widely used in education and business.
Religions: Hinduism (81.2%), Buddhism (8.2%), Islam (5.1%), Kirat (3.2%), Christianity (1.8%). Nepal is constitutionally secular, yet Hindu customs and festivals remain central to national life.
Health indicators:

• Health expenditure: 5.4% of GDP
• Physicians: 1.01 per 1,000
• Maternal mortality: 142 per 100,000 births
• Infant mortality: 24 per 1,000
• Access to safe drinking water: 91.2%

Education:

• Expenditure: 4% of GDP
• Literacy: 68.7% (male 79.7%, female 59.4%)
• School life expectancy: 14 years

Nepal’s youth population is large and increasingly educated, but rural-urban disparities remain.

Government and Politics

• Official name: Federal Democratic Republic of Nepal
• Government type: Federal parliamentary republic
• Capital: Kathmandu
• Constitution: Adopted 20 September 2015
• Head of State: President Ram Chandra Poudel (since 2023)
• Head of Government: Interim Prime Minister Sushila Karki (since Sept 2025)

Legislature: Bicameral Federal Parliament (Sanghiya Sansad)

• House of Representatives: 275 members (directly elected; 33.5% women)
• National Assembly: 59 members (partially elected; 37.3% women)

Administrative divisions: 7 provinces — Bagmati, Gandaki, Karnali, Koshi, Lumbini, Madhesh, Sudurpashchim
Judiciary: Supreme Court, High Courts, District Courts — independent judiciary with constitutional oversight.
Major political parties:

• Nepali Congress (NC)
• Communist Party of Nepal (UML)
• Communist Party of Nepal (Maoist Centre)
• Rastriya Swatantra Party (RSP)
• Rastriya Prajatantra Party (RPP)
• Janata Samajbadi Party (JSP)
• Loktantrik Samajwadi Party (LSP)

Suffrage: Universal at 18 years
Recent developments (2025): Following student-led protests and political infighting, Parliament was dissolved. Interim PM Karki leads a caretaker government pending elections in March 2026.

Economy

Nepal’s economy remains agrarian and remittance-dependent, though hydropower and tourism are emerging growth sectors.
Key indicators (2024):

• GDP (PPP): $149.6 billion
• GDP (nominal): $42.9 billion
• GDP per capita (PPP): $5,000
• Growth: 3.7%
• Inflation: 7.1%
• Unemployment: 10.8%
• Poverty rate: 20.3%

Economic structure:

• Agriculture: 21.9%
• Industry: 11.4%
• Services: 55.2%

Trade (2024):

• Exports: $3.7 billion — carpets, garments, iron, palm oil, synthetic fibres
• Imports: $17.8 billion — petroleum, electronics, iron, textiles
• Main partners: India (67%), USA (12%), Germany, China, UK
• Remittances: 33.1% of GDP (among the world’s highest)
• Foreign reserves: $12.5 billion
• Public debt: 39.9% of GDP

Nepal’s dependence on foreign employment and imports exposes it to global shocks, but hydropower exports, digital services, and cross-border trade with India and China present new opportunities.

Energy and Infrastructure

• Electricity access: 91.3% (urban 97.7%, rural 93.7%)
• Installed capacity: 2.85 million kW
• Energy generation:
  • Hydroelectricity: 99%
  • Solar/wind: <2%

With a hydropower potential exceeding 40 GW, Nepal aspires to be a South Asian energy exporter, already selling surplus power to India.
Transport:

• Airports: 51 (incl. Tribhuvan International Airport)
• Railways: 59 km
• Roads: Primary highway network connects Kathmandu with India; terrain remains a major barrier to connectivity.

Defence and Security

• Forces: Nepal Army (includes small Air Wing), Armed Police Force, Nepal Police
• Personnel: ~95,000 active
• Defence spending: ~1% of GDP
• Primary roles: National defence, disaster response, and peacekeeping

Nepal contributes over 6,000 troops to UN peacekeeping missions, ranking among the top global contributors. The Gurkha tradition, rooted in the early 19th century, continues through service in the British and Indian Armies, symbolising discipline and courage.

Society, Culture, and Heritage

Nepal’s culture reflects centuries of Hindu-Buddhist coexistence. Major festivals such as Dashain, Tihar, Holi, and Buddha Jayanti unite communities across ethnic lines.
UNESCO World Heritage Sites:

• Kathmandu Valley (cultural)
• Lumbini – birthplace of the Buddha (cultural)
• Sagarmatha National Park (natural)
• Chitwan National Park (natural)

National symbols:

• Flag: Only non-rectangular national flag in the world — crimson red (bravery) with blue borders (peace and harmony)
• National flower: Rhododendron (Lali Gurans)
• Anthem: Sayaun Thunga Phool Ka (“Hundreds of Flowers”)

Foreign Relations

Nepal maintains a balanced foreign policy, engaging both India and China while pursuing non-alignment and regional cooperation. It is an active member of SAARC, BIMSTEC, and the United Nations, and hosts numerous international aid and development agencies.