How AI is set to disrupt old industries
Beyond the Himalayas, a quiet but powerful revolution is taking shape. Nepal, a nation long defined by agriculture and tourism, is on the brink of a technological disruption that is poised to redefine its economic future.
Artificial intelligence (AI) and advanced tech are no longer distant concepts but immediate, powerful tools set to overhaul the country’s core industries. The opportunities are not merely incremental; they represent a potential leapfrog moment with the capacity to unlock billions in new revenue streams— from IT outsourcing to revolutionizing the farm sector and reimagining the tourism industry.
The most immediate and quantifiable disruption is happening in Nepal’s burgeoning IT outsourcing sector. While the global IT outsourcing market is projected to surge from $651.54bn in 2024 to an astounding $850.73bn by 2029, Nepal is rapidly carving out its own niche. The country’s IT service exports were officially valued at $515m in 2022, marking a staggering 64.2 percent growth from the previous year. However, this figure only hints at the true scale of the boom. In the first seven months of the 2024/25 fiscal year, official records show IT exports at Rs 12.41bn (about $92m), yet industry entrepreneurs insist the real annual figure is closer to a whopping $1bn. This massive discrepancy highlights a thriving, partially untracked digital economy fueled by a young, English-speaking talent pool and significantly lower operational costs, with developer salaries averaging around $10,000 annually.
AI is the catalyst transforming this sector from a traditional Business Process Outsourcing (BPO) hub into a center for high-value, specialized services. By automating repetitive tasks like data entry and basic customer care, AI is freeing up Nepal’s tech workforce to focus on complex, in-demand fields like data analytics, machine learning engineering, and cybersecurity. This shift allows Nepali firms to move up the value chain, enhancing their global competitiveness and positioning them as ideal partners for international collaboration. The opportunity is immense. Nepal can formalize these untracked earnings and build a multi-billion-dollar industry that rivals traditional exports.
Simultaneously, AI is poised to bring a much-needed revolution to agriculture, the backbone of Nepal’s economy, which employs over 60 percent of the population but has long been hampered by traditional methods and low productivity. The disruption here is foundational. AI-powered precision farming, using drones and sensors for real-time crop monitoring, pest detection, and soil analysis, can optimize the use of water and fertilizer, drastically improving efficiency. Predictive analytics, fueled by AI, can analyze weather patterns and market trends, empowering farmers with the foresight to select the right crops and planting times, mitigating risks from climate unpredictability.
Start-ups like GeoKrishi are already building integrated, data-driven platforms to bring these tools to smallholder farmers. Furthermore, technology like blockchain is creating transparent supply chains through initiatives like AgriClear, building consumer trust and ensuring farmers receive fair prices by connecting them directly to markets. This is not just about marginal improvements; it’s about transforming a sector that accounts for a quarter of the nation’s GDP, boosting food security, and creating a new generation of tech-savvy agricultural jobs.
Tourism, the third pillar of Nepal’s economy, is also ripe for an AI-driven reinvention. The opportunity lies in moving beyond conventional tourism to offer hyper-personalized, safer, and more efficient travel experiences.
AI-powered platforms can act as personal travel planners, crafting bespoke itineraries tailored to each visitor’s unique preferences. This technology can also revolutionize safety and sustainability—critical concerns in a country known for adventure tourism. AI models can provide early warnings for natural disasters like floods and earthquakes. Innovative start-ups like Airlift Technology are already deploying drones to clean up waste from Sagarmatha, tackling a major environmental challenge.
This creates a powerful new narrative for Nepal as a “smart” and responsible destination. The disruption extends to creating entirely new markets, such as AI-enabled health tourism, which would merge world-class medical care with Nepal’s unique wellness traditions. By enhancing every facet of the visitor journey, AI presents an opportunity to significantly increase tourism revenue and solidify Nepal’s standing on the world stage.
Nepal stands at a pivotal moment. The convergence of AI and technology offers more than just modernization; it presents a strategic opportunity to disrupt legacy systems and build a resilient, diversified, and globally competitive economy. The potential is measured not only in the billions of dollars waiting to be unlocked in IT, agriculture, and tourism, but in the creation of new industries and high-skilled jobs that could define the nation's prosperity for generations to come.
Flooded Lhende stream sweeps away Miteri Bridge
The flooded Lhende stream has swept away the Miteri Bridge.
The bridge connects Nepal and China in Rasuwa district.
The flooded stream not only swept away the bridge in the northern border of Nepal but also the vehicles stationed on the yard of Customs Office, Timure, according to Assistant Chief District Officer, Druba Prasad Adhikari.
Eleven persons were trapped in the flood while they were going to rescue the people in the area of the Customs Office.
The Nepal Army has been requested for rescue.
Detailed information on the damage is being collected, he added.
BRICS, Nepal and SAARC
As I am writing this essay, the first day of the BRICS Summit chaired by Brazil in Rio de Janeiro has concluded. Some official statements have already been released, all centered on highlighting the importance of the Global South to emerge and thrive in a world so far dominated by developed nations from the West.
With both President Xi Jinping and Vladimir Putin of Russia absent, Prime Minister Narendra Modi of India surely can take advantage of the stage, championing together with President Luiz Inácio Lula da Silva of Brazil the role of the developing nations.
“The Global South has often been a victim of double standards. Whether it is development, distribution of resources or security-related issues, the interests of the Global South have not been prioritized; India has always considered it its responsibility to rise above its own interests and work in the interest of humanity, " said PM Narendra Modi at the 17th BRICS Summit
It could be tempting to discuss the double standards of the Prime Minister who has always been very keen to cement his relationship with the Global West, especially with the leaders of the G7 but let’s set this aside.
Instead, let’s focus instead on what the BRICS could represent for a country like Nepal. There is no doubt that BRICS can have an important role in reinforcing a multipolar order. At the same time, there is the risk of this bloc polarizing the world further, especially if Russia and China succeed at pushing a strongly anti-western narrative.
It is one thing to lament the unfairness and imbalances facing the Global South, but a completely different matter if there is an open, continuous and unabated hostility toward the West in the way that both Russia and China are keen to unleash. This is the dilemma that Indonesia is facing as the latest nation officially joining the bloc as a full member.
Indonesia, like India, is one of the strongest representatives of the modern non-alignment in foreign policy. De facto, there is no longer a united nonaligned movement of nations but rather, we are talking of the strategic approach of nations like India, Indonesia and Nepal. With the multiple geopolitical crises arising, non-alignment is increasingly becoming a difficult balancing act for the capitals embracing it.
Therefore, the BRICS has a strong purpose and clear mission but only at a theoretical level because in practice, the bloc remains divided. It is one thing to rally around high rhetoric clamoring for justice and equality in the world but it is another thing to put together a coherent set of initiatives, considering also the divergent views that its members have on human rights and democracy.
Yet, there is no doubt that the BRICS cannot become a united and coherent geopolitical bloc, it has some geopolitical aspirations, given the fact that it has been welcoming new members for quite some time. Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates were officially accepted in 2023 during the South African chairmanship of the BRICS.
In practical terms, there is already a BRICS “global” bank, the New Development Bank (headquartered in Shanghai) under former Brazilian president Dilma Rousseff. While the NDB’s work is still somehow disappointing and underperforming, the potential is clear despite a “sibling” rivalry with Chinese’s Asian Infrastructure Investment Bank (AIIB). In addition, the Brazilian Presidency this year has been extremely careful at promoting very concrete areas of cooperation like climate change and artificial intelligence.
These factors make BRICS more relevant than G20 and G7, groups that, by design, are to be much more loose and unstructured platforms. Taking into account the strengths and the potential of BRICS but also its structural weaknesses, especially now that it is at risk of losing its strategic focus with its expanded (and diverse) membership, could it be worthy for Nepal to consider applying for a partner status membership?
There are many nations with this looser and less demanding type of affiliation, officially called the “BRICS Partner Countries”. It is an increasingly large group (as per now, Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, Uzbekistan and Nigeria have this status). These are nations that want to ride on the potential of BRICS without a full commitment to it. While they can bring an additional collective strength, these nations further stress the internal divide between democracy and authoritarian nations already existing among the full members of the BRICS.
It would not be unimaginable for Nepal to consider this level of partnership with the BRICS. Most importantly, Nepal would gain some visibility and have some tangible gains, especially in terms of enlarging its very limited global presence and establishing more South-South partnerships.
But, strategically speaking, the number one priority for Nepal would be to find ways to reactivate the process of cooperation in South Asia. The SAARC, despite being moribund, should remain the “North Star” for the country’s foreign policy. BIMSTEC and initiatives like “Nepal-India-Bangladesh Corridor could play an important role but none can match the unlimited potential of the SAARC.”
BIMSTEC, no matter its added significance, would never play a fundamental role like the SAARC. The former is a connector, a bridge between two different regions, South Asia and Southeast Asia and Nepal needs to expand its relationship with a nearby region with an incredibly dynamic market. But, in matters of international cooperation and possibly regional integration (the former is the linchpin for the latter), Nepal needs to find an “engine” to maximize its economic potential and develop holistically while eradicating poverty.
Such a propeller can be only found in South Asia and it is called SAARC. With SAARC, there would be a real possibility of creating a common pan-South Asian market and united regional economy. But we all know the current status of this regional body that has been adversely impacted by the relationships between India and Pakistan. There might be creative ways for Nepal to restart the process of regional cooperation but perhaps, Nepal needs to think of itself as its engine rather than delegating this essential and yet untapped function to a regional body.
It might be high time for Nepal to think differently and out of the box and overcome the structural obstacles from two nations in the region that are not interested in leaving the past behind.
Regional cooperation and regional integration in South Asia cannot be blocked by a risky rivalry that, if left unchecked and uncontrolled, can threaten the whole region. Why should not Nepal expand its horizon and strategically imagine itself as a member of bigger forums while also not giving up its strategic interests in its own backyard and truly push for reviving the dream of a more united South Asia?
PM Oli reiterates Lord Ram was born in Nepal
Prime Minister KP Sharma Oli has once again stated his claim that Lord Ram was born in Nepal and made another new claim—that Lord Shiva could have been of the Chamling community from eastern Nepal.
Speaking at a national seminar on ‘Tourism in Nepal: Status, Challenges and Possibilities’ by CPN-UML’s Tourism Department at Kathmandu on Monday, Oli called for greater trust in selling Nepal as the birthplace of such revered spiritual figures as Ram and Shiva. “We keep talking a lot about how to develop tourism but don’t have the courage to say that Ram was born in Nepal,” Oli stated. “Why would we let people say he was born somewhere else by just making up things? We shouldn’t be afraid to speak the truth just because others would get angry.”
Repeating what he had said before, Oli said that Lord Ram was born in Thori, Madi area of Chitwan, which is currently a part of Nepal. “I am not saying it was Nepal then, but today the land is in Nepal. Whether it was a Tharu settlement or something else at that time, we have to accept the present situation,” he said.
He criticized the reluctance of Nepalis to assert such things, reasoning that fear of controversy should not stifle facts. “If speaking the truth makes you angry, then what are we living for?” he questioned. “We can’t even assert Ram was born here. That shows how afraid we have become.”
Oli also suggested Lord Shiva might have been a Chamling boy, referring to the sacred caves of Halesi in eastern Nepal that are connected to Shiva and are located in a region normally inhabited by Chamling people.
“Sometimes I wonder if perhaps Shiva might have been Chamling. The caves we call Halesi, where it’s believed that Shiva meditated, are located around the Chamling community. Perhaps he was Chamling,” Oli said. “But I’m not claiming anything—just making an educated guess. Through the years, different histories may have converged, but geography doesn’t alter.”
He also said that other great religious personalities like Vedvyas, Kapil Muni and Gautam Buddha were born in Nepal. Quoting the Valmiki Ramayan, he said sage Vishwamitra taught Ram and Lakshman west of the Koshi river, which means the incident took place within what is today’s Nepal. “I did not write the Ramayan—it explicitly states that Vishwamitra went across the Koshi and taught Ram and Lakshman. It is also obvious that Vishwamitra was from Chatara,” he stated.
Oli’s remarks are part of a broader initiative to try to put Nepal on the map as a nation of extreme historical and spiritual significance, though his statements continue to receive praise and criticism in equal measure. While some appreciate his attempts to unveil Nepal’s ancient heritage, others fault the historic validity and political motive behind doing so.
While these remarks may appeal to Oli’s nationalist base, they are likely to provoke unease in India, where Lord Ram and Shiva are deeply revered and closely tied to cultural identity. His comments could complicate his efforts to improve bilateral ties and may jeopardize his official visit to India which was supposed to happen soon, diplomatic sources suggest.
Oli’s statements echo similar claims made during his earlier term as prime minister, when he said Ram was not born in Ayodhya, India, but in Chitwan. That assertion had drawn sharp responses from Indian media and political circles.