Digital Nepal Impact- GDP Growth 30 26.7 26.70 20 27.98 28.45 29.37 30.58 3% 30.98 33.10 36.08 32.77 3% 3% 4% 3% 3% 2% 2% 2% 1% 10 1% 0 0% 2018 BAU Incremental GDP growth GDP ( in US$ billion) 40 0% 2019 2020 Digital Nepal 2021 2022 Incremental GDP Growth Impact of ICT in job market across select verticals E-commerce – Nepal’s e-commerce has been limited to the Capital and key urban centers, while logistics challenges keep it out of rural areas. The e-commerce sector is still in its early stages, with estimates to be US$25 million in 2017 and is experiencing rapid growth. Growth in e-commerce platforms has the potential to accelerate FMCG, services and other small goods market, resulting in SME growth and employment. Indian e-commerce industry growing at 41% CAGR is expected to add 1.45 million jobs by 2021which employed only 23,500 in 2012. More than 2/3 rd of the jobs will be in logistics and warehousing which is available to semi-skilled and skilled workforce. Growth in seller base will add another 10 million new jobs. It is estimated that one job in e-commerce generates 3 jobs in allied sectors. The most important driving force for Indian e-commerce has been growth in smaller cities and towns, which have emerged as both demand and supply centers.41 Daraz Nepal’s major e-commerce website stated that it aims to grow the online sellers from 1200 to 5000 during 2018-19. The indicative job impact has been observed to be of 1:4 ratio, where increase in 1 online seller creates 4 direct jobs and while 12 indirect jobs are created in support services as delivery, customer services, warehousing etc. For a seller count of 5000, the potential impact on job market could be more than 75,000 new jobs across different levels. Boost in e-commerce can drive homegrown IT sector of Nepal, adding additional services jobs to the economy. Information and Communication technology (ICT) - Growth in ICT sector has multi-dimensional benefit for the economy. ICT inclusive of mobile, fixed line and internet is capable of boosting economy across different areas. Growth in ICT coverage and integration across different business sectors can boost in efficiency, bring in network effects and create enhanced logistics. IT-BPO services in Nepal can expand further, which remains an untapped area. Digital platforms for agriculture can boost production, improve supply chain and help farmers connect directly with markets. Start-ups and App ecosystem- Nepal’s IT space has about 500 companies with most of them focused on IT and ITES. Tech start-up scene in Nepal has been around for some time but has failed to catch up. Key challenges being finance, overall customer base and tech readiness of customers. The sector has started to grow with more focus from government and boost in the IT infrastructure. Startups can be catalyst to Nepal’s tech-based job creation on the lines of neighboring India. In 2015, startups in 41 Impact of e-commerce on employment in India, Dec 2016, KPMG 37