GDP Impact of US$8 billion It is estimated the complete impact of Digital Nepal initiatives to the tune of US$8 billion (NPR800 billion) upon complete implementation of programs across different sectors. The estimation is arrived on after analysis of following key points Capital investment in ICT has been a key driver of global growth World Bank study indicates that ICT has been a major growth driver across different economies globally during the period of 1995-2014. The impact of ICT in terms of capital infusion has been more profound in developed economies, where it averaged 27%, compares to developing economies averaging 14%. During the same period, it was also observed that developed economies spent close to 10% of capital on labor quality compared to developing economies spending 3% only.17  Government spending on ICT project roll-out and maintenance Capital infusion in form of government funding across different programs which is estimated to be over US$300 million for a period of 10 years. The capital investment is expected to drive the economic growth with help of telecom market. Potential points of investment are tenders for equipment and infrastructure roll-out, maintenance, skilling and re-skilling and revenue stream. E.g. Nepal has launched a US$35.5 million worth project to increase broadband connectivity in hilly and rural areas. Similar projects in future can improve direct and indirect employment.18  E-Governance and Cost Savings Government is often the leading ICT beneficiary in a developing or low-income economy. Some of the important areas have been e-governance, revenue streamlining, education and healthcare. Health care alone can help the government save up to 20% with use of telemedicine and remote consultations19. E-governance across developing economies such as India has helped government reach remote areas and streamlined processes across every aspect, reducing the cost of delay and inefficiency.  Job creation and skill development ICT infrastructure and internet-based economy has the potential to boost the Nepal job-market across different verticals. Telecom and e-commerce are already proving to be early job facilitator across different levels. Nepal’s e-commerce sector is valued close to US$30 million, which is experiencing growth at over 40% per annum. Nepal’s e-commerce revenue by 2023 is expected to cross US$192 million annually at current growth rates. 20 Telecom sector is another major employer, which has the potential to growth Nepal’s job market in form of skilled workforce requirement for technical work, installation, maintenance. Growth across internet and ICT based verticals will enable a larger IT-BPO sector in Nepal. A shift to service economy has the potential to add another US$4.0 billion in the fifth year of implementation, with potential cumulative impact of close to US$10.5 billion across 5-years. 17 Accelerating Growth, World Development Report 2016 http://kathmandupost.ekantipur.com/news/2018-10-11/digital-2020.html 19 Broadband: A Platform for Progress, Broadband Commission 2011 20 http://kathmandupost.ekantipur.com/news/2018-04-17/nepals-employment-rate-highest-in-southasia.html 18 28

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