Overview
A political reset after the 2025 protests, large hydropower ambitions and a delicate balance between India and China.
Nepal's 2025 youth-led protests brought down the government and opened a new political period. The country's economic story depends on hydropower, remittances and tourism, and on its ability to sell power to India and Bangladesh.
We analyse political stability and governance reform, the hydropower and power trade pipeline, infrastructure and connectivity with India and China, and the risks facing investors and development programmes.
Political resetHydropowerRemittancesConnectivity
What we watch
The issues that move the risk picture.
- Political stabilityGovernment formation, the reform agenda that followed the protests and the risk of renewed unrest.
- Hydropower and power tradeProject approvals, cross-border transmission and power export agreements.
- India and ChinaConnectivity projects, trade and transit arrangements, and their political sensitivities.
- Remittances and labour migrationThe economy's dependence on workers in the Gulf, Malaysia and India.
- Disaster and climate riskEarthquake, flood and glacial lake risks to people and assets.
Questions we answer
Typical client questions
A selection of the questions clients bring to us on Nepal.
- How stable is Nepal's political settlement, and what could reopen it?
- What are the main risks to a hydropower investment from approval to export?
- How do India and China shape the prospects of infrastructure projects in Nepal?
Discuss Nepal with an analyst.
Book a free 30-minute briefing call. We will give you an initial view where we can, and a written scoping note within two business days.
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