Potential Impact on Nepal Growth in ICT can directly impact Nepal’s GDP value in coming years with a paradigm shift in employment across sectors. Internet penetration in Nepal grew during 2014-2017 by 21% of population. However, with slower internet connection more prevalent, the focus is now on upgrading the infrastructure to broadband and 4G levels. Current broadband penetration is close to 30% mostly over 3G/4G mobile connections. Nepal government had targeted 45% coverage across households by broadband by 2018 and all the VDCs 29 under broadband Master Plan 2020. Additional penetration of broadband internet can aid Nepal’s GDP by 2.8-3.3% for each 10% penetration achieved, it is estimated a slower growth in overall internet penetration growth, but expects development of broadband in the existing network areas. Improved broadband coverage can help Nepal realize more than 3% GDP value addition over next 5-years. ICT evolution in India led to 17% increase in internet traffic which during 2015-16 lead to absolute increase in GDP by USD103 billion, whereas increase in mobile of same scale would add have added US$41.4 billion. 30 36.30 40000 35000 40.00 35.00 30000 30.00 25.26 25000 25.00 20000 20.00 15000 15.00 10000 10.00 5000 5.00 0 0.00 2017 Services Industry GDP Value, in US$ billion Sector wise contribtuion to GDP, in US$ current years Porjected GDP Growth DIgital Nepal, US$ million 2022 Agriculture GDP ( current US$, billion) Okun’s Law Okun’s Law explores and defines the relationship between employment and GDP growth. The law based on empirical evidences mentions that every time GDP grows 2% faster than the normal growth rate31, 1 percentage point of employment is created. The law also has been applied with GNI, employment rises by 1%, GNI increases by 3%. Research data by different sources also presents a strong co-relation between job creation and GDP of up to 0.7 to 0.82. 323334 29 VDC- Village Development Center Estimating the value of new-generation internet-based applications in India, July 2017, ICRIER-Broadband India Forum 31 Normal Growth rate- the potential growth rate of economy under current condition without external disruption 32 https://www.investopedia.com/articles/economics/12/okuns-law.asp 33 https://marketrealist.com/2015/02/job-creation-gdp-growth-go-hand-hand 34 https://www.enterprise-development.org/what-works-and-why/evidence-framework/link-betweenemployment-and-economic-growth/ 30 35