Submit your Article

Rahul Barua is the Secretary General of the South Asia Foundation. He holds a B.Tech in Chemical Engineering from the Institute of Technology, Banaras Hindu University (now IIT-BHU), and currently serves as a Visiting Faculty at Malaviya Peace Research Centre, Banaras Hindu University. In 1997, he established the first-ever crafts development center in Sikkim, introducing microcredit and self-help groups in the region. 

He also developed a potter’s village on the outskirts of New Delhi, named Kumhargram. Additionally, he founded the South Asia Centre for Peace Research and Sustainable Development in collaboration with Lumbini Buddhist University. Baruwa has played a significant role in peace-building efforts in Nepal, facilitating meetings between Nepali and Indian political parties.  He worked alongside prominent figures such as Sitaram Yechury and Dr DP Tripathi as well as Nepali leaders like Pradeep Giri, Girija Prasad Koirala, Krishna Prasad Mahara, Pushpa Kamal Dahal and Madhav Kumar Nepal, among others. ApEx talked to him on wide-range of issues related to Nepal-India relations. Excerpts: 

What is the South Asia Foundation? Please tell us about its activities.

The South Asia Foundation is a Nepal-registered organization. In collaboration with the Lumbini Buddhist University, we established the South Asia Centre for Peace Research and Sustainable Development. A few years ago, around 5,000 people visited the Maya Devi Temple — a sacred site for followers of Buddha’s teachings — daily. Today, the number has risen to 7,000, with an additional 15,000 visiting Lumbini. Gautam Buddha is not just a figure for Nepal or India, he is a South Asian face for global peace and humanity. His teachings — tolerance, peaceful co-existence, compassion and moving away from materialism — are more relevant than ever in today’s conflict-ridden world. 

This center was conceptualized years ago, and it is very encouraging that Lumbini Buddhist University has provided it with land and necessary infrastructure.  The center not only disseminates knowledge about Buddha but also offers academic diploma courses designed in collaboration with the university. Many top universities of India and South Asian, along with experts, academicians and retired government officials are eager to engage with the center to share their knowledge and expertise with students.

We aim to facilitate Memorandum of Understanding (MoUs) with Lumbini Buddhist University and other universities all over the world. We are in negotiations with the best universities of the South Asian countries. Best minds have come forward and we are collaborating in multiple forms. Several MoUs have already been signed.

What are the other areas that the Foundation and the Center are working on?

We are working on several bilateral issues such as water sharing and border management among others. In 2017, former Indian Ambassador to Nepal, Manjeev Singh Puri, highlighted how Nepali living in India are contributing significantly to the Indian economy. Gone are the days when Nepalis were limited to roles like security guards or menial jobs. Today, they are entrepreneurs running restaurants, manpower agencies and online service providers. 

One area of focus is Nepal’s potential to supply dairy products, especially ghee, to South Asia. Milk production is falling in Bangladesh, Bhutan, Sri Lanka, as well as in the Nepal-India border regions. Nepal can fill this gap by supplying dairy products not only to India but also to other South Asian countries. There should be duty-free agreement on these items between Nepal and India. The Foundation operates without foreign funding, relying entirely on internal resources.  We are training Nepali women to become entrepreneurs and have partnered with India’s dairy giant Amul to make the dairy sector organized. There are many areas where we can work together.

Can you please tell us about the light and sound program being launched in Lumbini?

We have signed a MoU for this project and are raising funds locally. Several banks have agreed to support us, though they have their own terms and conditions as per the law and banking regulations. This light and sound program is the first of this kind in Nepal and one of the few in the world dedicated to narrating the story of Lord Buddha. Our goal is to spread the message of peace, compassion and Buddha’s teachings which are relevant even today. We are doing a lot of work on DPR and research from our own funds.  We are receiving technical assistance from a British company. The idea for this light and sound program was proposed to me by Sujeet Shakya of Kathmandu Guest House.

Last week, you organized an important seminar in New Delhi. What were the key outcomes?

The seminar was organized to facilitate knowledge-sharing between Lumbini Buddhist University and other universities in India.  Renowned professors, academics and historians participated in the seminar and shared their insights. They also pledged to support our initiatives. 

Five universities and two institutions have agreed to collaborate with the Lumbini Buddhist University and the Center on joint research, student and faculty exchange programs, seminars, conferences and academic partnerships. We also held sideline meetings with Nepali political leaders and other stakeholders. 

Many more universities have expressed interest in supporting Lumbini Buddhist University. During the seminar, Nepali delegates also engaged with Indian leaders and diplomats, discussing Nepal’s ongoing development and its emergence as a dynamic nation. Over the past two decades, not only has India undergone rapid changes, but Nepal has also transformed significantly.  These changes need to be acknowledged, understood and embraced.

How do you assess the current state of Nepal-India relations?

Nepal and India are both sovereign countries and must mutually respect each other. Both sides share the responsibility to strengthen this relationship. The two countries are equals, each holding their own vote in the United Nations and other multilateral organizations. There is no thing as a ‘big’ or ‘small’ country. Mutual respect is essential to foster a healthy relationship. India’s prosperity should benefit Nepal as well, and vice versa.

What are your suggestions for future prospects?

There has been significant progress in energy cooperation, which is a positive step. However, we should expand student exchange programs on a large-scale, moving beyond limited scholarship schemes. Other potential areas of collaboration include agriculture and dairy productions. India should encourage joint projects in Nepal to further deepen bilateral ties.

How do you view the growing Chinese influence in Kathmandu?

I do not consider Chinese influence as a dominant factor in Nepal-India relations. China has its own aspirations of becoming a geopolitical leader, but what often gets overlooked is the unique and special relationship between Nepal and India rooted in shared social, historical and cultural ties and linguistic similarities.

BR Gems, RB Diamonds, and Classic Diamond—three synonymous names in Nepal’s diamond industry—are all the brainchild of Babu Raja Maharjan, who currently serves as the chairperson of Classic Diamond. His younger brothers, Amir and Samir, have also been in the business for around 25 years. Classic Diamond, focused on establishing itself as a leading brand, regularly organizes the Timeless Paragon Jewelry Fashion Show (TPJFS). The fifth season of TPJFS is set for Feb 24, followed by an exhibition, Elite Collection 2025, from Feb 25 to March 3. ApEx spoke with Amir Maharjan, Managing Director of Classic Diamond. Excerpts:

What inspired Classic Diamond to organize TPJFS?

The jewelry industry is centuries old. Many were engaged in the business, but no one was truly working to build a brand in Nepal. That’s why, through Classic Diamond, we set out to change this in 2006. We introduced new initiatives, such as establishing high-end manufacturing facilities in Nepal, launching customer retention schemes, and adopting modern marketing strategies like publishing flyers. This gave us exposure, but we wanted a more refined way to showcase our products. That’s when we conceptualized the TPJFS. Seeing models wear and display real jewelry allows clients to visualize how the pieces look when worn.

The first season of TPJFS took place in 2010, featuring Indian actress Minissha Lamba. In 2012, we held the second season with Zeenat Aman, followed by the third in 2014 with Sushmita Sen. The success of these shows motivated us, as they significantly boosted our business and brand recognition. The fourth edition in 2017 featured Manisha Koirala. Now, we are all set for the fifth season, with Lara Dutta and other renowned figures from the fashion industry. This show remains the best platform to showcase our jewelry. These shows also help people become more conscious of the value and visibility of the brand.

This year, the show features Lara Dutta and other renowned figures from the fashion industry. How do such high-profile collaborations help the brand’s presence?

It’s human nature that when we see others wearing something, we get inspired and want to wear the same. This is especially true when celebrities or high-profile individuals set trends. Bringing a former Miss Universe like Lara Dutta gives our products significant exposure. Dutta is not only an actress but also an inspiring and intelligent woman—a true example of women’s empowerment. Her endorsement of our jewelry is immensely valuable for our brand. And, we believe that the personality she carries truly matches our brand objectives and thus we have chosen her to walk on the ramp wearing our crown.

What makes Elite Collection 2025 special and how does it stand apart from previous collections?

In this year’s collection, we have focused extensively on design because there is currently a trend of low-quality designs in the market. With this collection, we aim to show our customers what true quality in design and product looks like. Jewelry should be state-of-the-art, prominent, long-lasting, and built with solid craftsmanship. This collection features a blend of wedding, casual, and office-wear jewelry. Additionally, we are offering a 25 percent discount off the factory price. The market is highly competitive, and while the discount helps, it is the quality that truly matters. This time, we have kept the profit margin to a minimum, with the sole vision of showing our clients what actual hand-made jewelry looks like.

Many people aren’t aware that high-quality products are available in Nepal. There is a significant amount of cross-border business in this industry. However, with this collection and scheme, we aim to show our customers that we offer the best products in Nepal.

How has your brand evolved over time and how do you see the future of this industry?

When we started, the jewelry market in Nepal was dominated by imports from India. Back then, after receiving training in India and Hong Kong, we noticed that there were no proper manufacturing facilities and expertise in Nepal. However, we saw a huge opportunity and potential, which led us to start our own brand. At the time, the industry followed a traditional model, with two or three workers in a jewelry shop. We, however, established a manufacturing factory with the goal of ensuring clients wouldn’t have to go outside of Nepal to buy jewelry. This would not only benefit the market but also keep money within the country, generate employment, and ensure quality. 

It has been solely driven by family unity and values that helped us grow so far. Our major family members have also gained expertise in precious gemstones and innovative design and aesthetics. 

Initially, since people were accustomed to going to India for their jewelry, it was challenging for us. But over time, we managed to establish our presence. We also educated people that buying jewelry in Nepal would make after-sales service much easier. Slowly, we were able to break that trend. 

As for the future of the industry, it’s very bright. If the government provides more support, there’s immense potential. Currently, there is a shortage of raw materials and difficulties with importing and exporting. While we have a large market abroad, export challenges prevent us from reaching our full potential. Classic Diamond alone can export jewelry worth $6-7m annually, which would not only help generate foreign currency but also contribute to employment and improve the nation’s financial situation. However, the government’s support is crucial. In many countries, exporters receive benefits when importing raw materials, based on the amount they export, but there is no such provision in Nepal.

How do you balance tradition with modern aesthetics in your jewelry designs?

Today’s clients are largely inspired by designs from abroad. However, we put significant effort into our designs and do not directly copy others. Designs are the core competencies of Classic Diamond. Even when clients request replicated designs, we incorporate our own modifications. Additionally, we create original designs. Over the past three years, we have developed 3,000 new designs and many of them will also be showcased at the Elite Collection 2025.

What measures does Classic Diamond take to enhance customer satisfaction and build lasting relationships?

We have sustained our business primarily through exceptional customer service. We don’t view customers solely from a business perspective but strive to make them part of our family. In jewelry, both financial and emotional aspects are intertwined, making this connection essential. We ensure customers receive the best products. In some cases, we have remade items even when customers were satisfied but we felt they didn’t meet our standards. Every product undergoes quality control before reaching the customer. Additionally, we offer a 10 percent return policy, free exchanges, free cleaning, and free maintenance.

With showrooms in New Road, Pulchowk and in the US, do you have plans for further expansion within Nepal or internationally?

In the near future, we are expanding with two more stores in the US, bringing the total to five. In Nepal, we will soon be opening a store in Pokhara. We would like to reach out to as many jewelry enthusiasts as possible and also to take our sophisticated craftsmanship to the bigger marketplace.

Anton Ambrose is the head of Public Policy and Regulatory Affairs for inDrive Asia Pacific (APAC) region. With more than two decades of experience in policy advocacy including roles in aviation and mobility solutions across APAC, Middle East and Africa, he has experience in open skies agreements with diversity, equity, and inclusion initiatives. Ambrose specializes in navigating complex regulatory landscapes and advocates for policies that foster innovation, sustainable growth, and empowerment for all. In this interview, he talks about the prospect of the ride-hailing industry in Nepal, the challenges, and potential solutions. 

How does inDrive plan to navigate Nepal’s regulatory landscape for ride-hailing services?

At inDrive, we strongly believe in open dialogue and collaboration, which is precisely why we are here to engage in meaningful discussions with stakeholders. We recognize that regulatory frameworks are essential for ensuring a well-structured and efficient ride-hailing ecosystem. Given our presence in 48 countries, we have gained extensive experience in adapting to different regulatory environments worldwide.

Our approach is to actively engage with local authorities, policymakers, and relevant stakeholders to contribute to the development of a policy framework that aligns with Nepal’s specific transportation needs. We see this as an opportunity not only to share insights from our global operations but also to tailor solutions that best fit the unique characteristics of Nepal’s ride-hailing sector. By exchanging ideas and best practices, we hope to foster a regulatory environment that benefits drivers, passengers, and the broader community.

What challenges do you foresee in Nepal and how will you address them?

One of the most significant challenges we anticipate in Nepal is the lack of a clear regulatory framework governing ride-hailing services. At present, there are no well-defined policies that specifically address the operational aspects of platforms like inDrive. This regulatory uncertainty can create roadblocks for the industry’s growth and hinder innovation.

However, this challenge also presents an opportunity. Our presence here is not just about operating within the existing framework but also about collaborating with the relevant authorities, policymakers, and industry stakeholders to establish fair and effective guidelines. By working closely with government bodies, transport regulators, and driver communities, we aim to advocate for policies that are both practical and inclusive—ensuring they benefit all stakeholders, including passengers, drivers, and the broader transport ecosystem.

Moreover, regulatory clarity will not only support inDrive’s sustainable operations in Nepal but will also contribute to the long-term development of the ride-hailing industry. By fostering open dialogue and engaging in constructive discussions with policymakers, we hope to pave the way for a more structured, transparent, and growth-oriented environment. In turn, this will create a more reliable and efficient mobility landscape, ultimately benefiting the people of Nepal.

How do the 70:30 rules especially impact inDrive business operations in Nepal?

The 70:30 foreign direct investment (FDI) policy in Nepal has a direct and significant impact on inDrive’s operations, not only for our current business but also for our future expansion plans. This policy establishes a precedent that may discourage foreign investors from entering the market. When we look at Nepal’s neighboring countries, such as India, we see a more flexible approach toward FDI. India has not imposed a strict 100 percent FDI regulation across sectors, allowing businesses more freedom to operate and grow. A rigid 70:30 rule in Nepal creates additional policy barriers, making the country less attractive to global investors.

Investors are generally inclined to operate in regions where there are minimal regulatory constraints and more economic openness. Policies like this, which limit foreign ownership, could hinder Nepal’s ability to attract global businesses and contradict the country’s stated goal of encouraging foreign investment. For example, during investment summits, Nepal’s leadership emphasizes the need to attract FDI. However, restrictive policies like the 70:30 rule send a contradictory message.

Another concern is the inconsistency across different sectors. The IT industry in Nepal has allowed 100 percent foreign ownership. Given this, we seek clarity on why this specific 70:30 ratio was chosen. Why not 90:10, or a more flexible structure that accommodates different business models? These are critical questions for stakeholders to address.

At inDrive, we believe in fostering dialogue with policymakers and industry leaders to find a balanced approach. We are committed to Nepal, not just as a business but as a long-term partner in economic and community development. Our engagement goes beyond operations—we actively contribute to Nepali society through various initiatives.

Our commitment extends beyond our core business. As a brand, inDrive has always prioritized giving back to the communities where we operate. Globally, we have a dedicated initiative called inVision, which focuses on community impact projects. While it is not strictly a corporate social responsibility (CSR) program, it aligns with similar objectives of social good. These initiatives reflect our long-term vision of impacting the lives of 1bn people by 2030. While we operate as a business, we ensure that a portion of our success is reinvested into the communities we serve.

Every nation is striving to attract FDI and open up its economy. Nepal should align its policies with this global trend to foster sustainable economic growth. A restrictive approach like the 70:30 rule risks deterring foreign businesses, reducing investment, and slowing progress.

Are similar regulations implemented in the market where drive upgrades are secondary? If so, how have they affected business dynamics?

Yes, it’s an important question. In most markets, there is a general trend toward economic liberalization, where regulations are designed to encourage competition and innovation. However, Nepal seems to be moving in the opposite direction, adopting policies that may hinder market openness. This is something that policymakers should examine more closely to ensure long-term economic benefits.

As a company, we are committed to supporting and engaging with regulatory bodies to provide insights into global best practices. Our goal is to help educate stakeholders about how similar markets have approached these challenges and what lessons can be applied to Nepal’s context. The adoption of new technologies and business models takes time, and identifying the right partners is a crucial part of that process. While we are open to collaborations, we believe in forming strategic partnerships that align with our vision and contribute to sustainable growth. This is a process that requires careful consideration, but we remain optimistic about working together with all stakeholders to find the best way forward.

How does this rule influence Nepal’s attractiveness for foreign investors, especially in the digital economy sector? 

This rule is likely to significantly reduce Nepal’s attractiveness as a destination for foreign investors, particularly in the digital economy. Investors tend to seek stable and predictable regulatory environments where their businesses can operate without unexpected disruptions. When a large global company like inDrive sees potential risks due to such policies, it raises concerns for other investors as well. They may perceive Nepal as an uncertain investment landscape where regulatory decisions could adversely affect their operations at any time.

As a result, companies will exercise far greater caution before committing resources, which could slow down the inflow of foreign capital into Nepal. This hesitancy will not only impact large businesses but will also create ripple effects throughout the economy. A decline in foreign investment could limit job creation, reduce technological advancements, and curb the overall growth of Nepal’s digital sector.

Moreover, such regulatory uncertainty places unnecessary pressure on the broader economy. Foreign investments often contribute significantly to local communities by creating employment opportunities, fostering innovation, and supporting ancillary businesses. If investors decide to pull back or redirect their capital elsewhere, the people who will suffer the most are those who rely on the economic benefits generated by these investments—local entrepreneurs, service providers, and everyday citizens who depend on a thriving digital economy.

Ultimately, policies that create uncertainty can be detrimental to Nepal’s efforts to position itself as an attractive hub for digital businesses and startups. Instead of fostering innovation and investment, such rules could deter companies from expanding or even entering the Nepalese market in the first place. For sustainable economic growth, it is crucial to ensure that regulations support, rather than hinder, investment in emerging sectors like the digital economy.

Could the 70:30 rule hinder driver availability? Are we to introduce innovative service or technology in Nepal? What do you think? 

The 70:30 rule could potentially complicate the availability of drivers for inDrive, as it introduces significant challenges in terms of resource allocation and future investment planning. This policy not only impacts the local business but also has wider implications for other verticals and regions where we operate. In essence, with the 70:30 rule, we are bound to face restrictions on how we distribute resources, making it more difficult to scale our operations and remain agile.

One of the main issues lies in the unpredictability of such policies. For instance, if the policy were to shift from a 70:30 split to something like 50:50 tomorrow, the resulting changes could create additional strain on our ability to make long-term decisions and investments. Investors, therefore, are likely to feel uncertain about the stability and consistency of the business environment.

In light of this, the key to navigating these challenges lies in policy consistency. Investors and companies need a predictable regulatory framework in order to make sound, long-term investments. Furthermore, it’s important to engage all stakeholders who are likely to be affected by such policies, as this dialogue is crucial to ensuring that everyone has a voice in shaping the future of the economy. In today’s global environment, where nations are in constant competition to attract foreign direct investment (FDI), such collaborative efforts can be crucial for fostering a sustainable and innovative business climate.

As for the introduction of innovative services or technologies in Nepal, the answer largely depends on how the local policy environment evolves. If it remains stable and conducive to business growth, we will certainly be in a position to introduce new services and technologies. However, without such consistency, it becomes much harder to justify the risks associated with new ventures.

What alternative regulatory approaches would you suggest to promote both drivers and welfare of the industry growth in Nepal?

To foster the growth of both the driver community and the overall industry in Nepal, I would suggest adopting a more collaborative regulatory approach. It’s essential to create a platform for engagement between both the government and private sector stakeholders. Open communication and cooperation between the two sides would help align objectives, ensuring that both drivers’ welfare and the industry’s growth are prioritized.

By bringing the industry together, we can find solutions that benefit all parties involved—drivers, the local community, and the industry as a whole. We can also explore opportunities for technology transfer and capacity building, as we are already committed to investing in people and resources. This kind of collaboration can pave the way for more sustainable and effective growth within the sector.

Moreover, it’s important to recognize that government investment in certain areas is not universal across the globe. However, enhancing engagement and collaboration between the public and private sectors, especially through public-private partnerships, could create significant opportunities for the industry’s development. This level of partnership has proven successful in various countries and could lead to a more conducive environment for growth in Nepal’s transport sector. 

Thomas Prinz, who has served as the German Ambassador to Nepal since September 2021, is nearing the end of his tenure. He embarked on his diplomatic career in 1998 by participating in EU election observation missions. Over the years, he has held various roles within the German Federal Foreign Office and served in German embassies across several countries, with a particular focus on Asia.

Prinz emphasizes that Germany and Nepal will continue to strengthen their partnership, rooted in shared values such as democracy, individual freedom and a commitment to building a just and equitable society that prioritizes environmental conservation and climate action. The two nations have fostered a robust relationship over the past 67 years since the establishment of diplomatic ties in 1958. Development cooperation began in 1961, and Germany has since become one of Nepal’s key trading partners. In this context, Kamal Dev Bhattarai and Pratik Ghimire of ApEx sat down with Ambassador Prinz for an interview. Excerpts: 

Can you share your overall impression of Nepal?

Nepal is a great country with wonderful people—very welcoming, very open and very friendly. It has always been a great pleasure for me to work with Nepal and Nepali counterparts. Nepal has such a diverse culture, with many different ethnic groups, including the Newari culture, as well as indigenous and tribal cultures in the valley and up in the mountains. It’s a fantastic place.

What is the one thing you will miss most about Nepal?

It’s indeed the friendliness of the people. Recently, I had a guest from Germany here, and she has traveled to various countries in this region. She said it’s so nice coming to Nepal—such a friendly and welcoming culture. People are always smiling on the streets, in taxis and at the airport. That is really something that touches me, and I will always keep that in my mind and remember it.

How do you see the current state of Nepal-Germany relations?

We have a very friendly bilateral relationship. We do not have any problem whatsoever. We are very good partners in many international matters, and we coordinate well. The way we conduct our development cooperation in Nepal is very much appreciated by the Nepali government. So, all in all, I would say we have extremely friendly relations. And that’s one reason I always feel pleasure working here in Nepal.

Do you think Nepal-Germany relations could have expanded further, considering past political engagements?

There is a problem on both sides. For Nepali politicians and decision-makers, Europe and Germany are far away. And the same is true for the German side. Nepal is, hence, not always in focus. It is up to us, the diplomats, to bring these countries into the focus of our decision-makers and try to engage top-level politicians in personal meetings. It happened last year when the President of Nepal Ramchandra Paudel made an official visit to Berlin and was received by the Federal President of the Federal Republic of Germany. But of course, we would like to see more of these developments. As I said, the problem is on both sides. During Covid, there was no travel, then we had Russia attacking Ukraine, Brexit and all these issues were consuming politicians in Europe. So, in a way, it's understandable that Nepal was not in focus.  

Another problem that hinders progress is the high fluctuation of political decision-makers in Nepal. Since I have been in Nepal, I have met three Prime Ministers, six Foreign Ministers and five Home Ministers. This rapid turnover of political personnel makes it difficult to build long-term relationships. I am sure that if Nepal had more stability, it would also be easier to establish more personal contacts.

Is there a one-way dynamic in Nepal-Germany relations, where Germany has been providing assistance for seven decades while Nepal has not engaged in proper negotiations?

Indeed, I sometimes discuss with my European colleagues how we could make decision-makers in Nepal more aware of the opportunities they could find for closer cooperation with Europe. We do not have this strategic view in the region, like, for instance, the direct neighbors have or maybe also outside big powers have. We are more interested in long-term business-making, civil contacts and so on. That is why I think they could take a closer look at Europe in some areas. 

We offer some business opportunities that others don’t. Even if others do offer the same, why not go with the Europeans? When you choose European partners, you are not in this, let’s say, political competition between northern and southern neighbors and so on. Therefore, sometimes I think Nepali decision-makers could take a closer look at what Europeans have to offer.

What is Germany’s Indo-Pacific outlook, and how does it view South Asia? How is Germany engaging with the region, and where does Nepal stand?

We have an Indo-Pacific guideline—or strategy, you could say—which was adopted by the German government about five years ago, and it clearly states that we want to strengthen our relations with democratic states and governments in the region. And Nepal is definitely one of those countries. So basically, the decision is to have a stronger footprint in the area and to closely cooperate with democratic countries. The fact that we revoked our decision to end our bilateral development cooperation is part of those guidelines. The fact that we are still very active here with our development cooperation is based on our commitment to strengthening democratic countries in this region.  

Regarding Germany’s outlook on South Asia, I have to say it is very much dominated by Germany-India bilateral relations, as India is the dominant country in the region. We have very strong trade relations with India, with cooperation in universities, research and so on. That largely shapes the perspective of German decision-makers, and I have always been busy trying to convince politicians, who visit South Asia and go to India to also look across the border and see what is happening in Nepal. When we have trade fairs in India, I try to convince our Chamber of Commerce in Mumbai to encourage German participants to take a look at Nepal. That will take some time, but I am quite optimistic that with India's growth, we will see some positive effects in Nepal too.

The Nepali government claims that the current environment is favorable for investment. How do you view Nepal’s overall investment climate from a German perspective?

The investment climate for foreign investment in Nepal is actually not very good or welcoming. We see minor improvements, and there is willingness on the part of the government to improve things, but we have to see how it plays out on the ground. The announcements we have heard so far are okay, but we need to see how they translate into action. How difficult it is to get a work permit or transfer money—these factors hinder foreign investment here.  

The fact that when you open a business here, you are always a minor partner in a joint venture. This is very difficult for European companies because they have their own compliance practices, and when they can’t guarantee these compliance practices, it becomes very difficult for them to invest. So, all in all, I would not consider Nepal a foreign investment-friendly country. I hope that will change, and I trust the government’s intention to improve the situation, but to convince investors that real change is happening, we need to see concrete improvements on the ground.

Germany is experiencing a labor shortage and has eased visa regulations to attract workers from countries like Nepal. What are the latest developments on that front?

We have changed our immigration laws recently and have become much more open to receiving foreign labor. Last year, we had a change in immigration law, and we are now openly welcoming skilled labor from abroad. It has become very easy to immigrate to Germany if the candidate brings any kind of skills with them. If you have a master's degree from Nepal or have already been studying in Germany and obtained a degree from a German university—whether in engineering, IT or any other field—you can easily apply for a job in Germany. If you find a job, we will issue the visa. We even accept people who come to Germany without having a job, as long as they have a degree and want to search for a job in Germany. In such cases, we can also issue a visa.  

We also have one way to migrate to Germany for unskilled labor, which is through the Nepal Secretariat for Skills and Training, an institute in Kathmandu. Through this program, we offer a one-year German language training course. Once they pass the course, they can go to Germany for vocational training, which is paid from the very first day. They are treated equally to Germans who undergo vocational training in Germany, receiving the same health insurance and social security benefits. Currently, we have about 130 Nepalis in this program already in Germany, and about 500 in the preparatory course in Kathmandu.  

So, besides skilled work, this is another way to go to Germany. When they complete this three-year vocational training, they graduate with a diploma and can then stay in Germany and work. These are the immigration pathways we have opened, and as we can see, many Nepalis are already following them. We are optimistic that we can increase the number over time.

Have you identified any potential areas where Nepal and Germany can expand further?

There are some traditional areas of cooperation, and we should continue working on them in the future. I am happy that we have now reached pre-covid numbers of German tourists coming to Nepal, and in this area, we will see further development. I could imagine, for instance, adding other groups of tourists, such as bicycle tourists or female trekking groups—these are areas where I see potential. Cultural groups also present opportunities.  

But beyond these traditional areas of cooperation, I see huge potential for Nepal in the field of IT services. Nepal already has a very vibrant IT sector, and I can only encourage decision-makers to put more effort into further developing it. There is tremendous demand for IT services, including programming, AI and algorithms essential for modern society. We have successful programmers here in Nepal, and those in Europe who are already working with Nepali programmers have had very positive experiences. So, I hope that in the future, this cooperation will create even more opportunities.

How do you see Nepal’s recent engagement with China?

China is one of Nepal’s two major partners, and whoever is in government in Nepal must engage with both. That will never be easy. Nepal has a major partner to the north and another to the south, and geography cannot be changed. For every Nepali politician, decision-maker and foreign minister, it is absolutely necessary to maintain good relations with both. The key is to balance these relationships—to cooperate with both without losing the ability to make independent decisions. It is crucial for Nepal to remain in a position where it cannot be blackmailed or forced into actions against its interests by either side.  

My recommendation would always be to follow the policies that various governments have adopted to avoid falling into a debt trap from any side. Nepal is a sovereign country and can engage with both neighbors. Several governments have demonstrated the ability to find an equilibrium and manage these relationships effectively. Moreover, both of Nepal’s neighbors have an interest in the region’s smooth development—nobody wants instability. Nepali politicians have experience in managing these dynamics and understand how to deal with two powerful neighbors.

What are your suggestions to our politicians on Nepal’s development?

I would say Nepal should focus on its strengths. Tourism, for instance, could be an area to build on. Currently, foreign tourists spend around $20 per day in Nepal, and efforts should be made to increase this figure, positioning Nepal as a more high-end destination. Another area where Nepal is strong is in IT services. The government should do whatever it can to support institutions that train IT engineers and make it easier for the sector to develop. It should also facilitate foreign companies to set up shop in Nepal to take advantage of the potential offered by these young engineers. Those would be my recommendations.