A total of 13.2% of Nepalis living in the United States have invested in Nepal, according to the recently released report "Nepali Migrant Dreams in the American Landscape" by the Institute for Integrated Development Studies (IIDS). The report highlights that while 9.5% of Nepalis in the US have invested domestically, only 0.4% have invested in countries other than Nepal or the US. A significant 76.9% of the diaspora have not made any financial investments, showcasing untapped potential for economic engagement.
"This underscores the need to create more attractive opportunities and reduce barriers to investment, enabling greater economic engagement of the diaspora," the report states.
The report, released in collaboration with the Embassy of Nepal in the United States and the Asia Foundation, provides an in-depth analysis of the livelihoods of Nepalis in the US. It shows that Nepal's real estate sector is the most popular investment destination among diaspora investors. Of those who have invested in Nepal, 55.6% have chosen real estate, 35.2% opted for banking and financial services, 20.4% invested in hydropower and clean energy, 11% directed funds to tourism, 7.4% supported education and agriculture, and 6.5% focused on information technology and media.
Despite this, many diaspora investors have cited challenges in Nepal’s investment environment compared to the US. The report emphasizes the need for reforms to simplify investment processes, a concern frequently echoed by domestic investors.
Most diaspora investments remain concentrated in the Kathmandu Valley. However, the report notes that encouraging investments outside the valley could alleviate urban pressure and foster the development of new urban centers.
The Nepali diaspora in the US has grown significantly over the past 12 years. Current estimates place the population between 185,000 and 215,000, with 68.3% of individuals arriving after 2010. The 2020 US Census estimated approximately 280,000 Nepalis residing across the US, with major concentrations in Texas, California, Virginia, Maryland, and New York.
