Population Census data, 2021(A.

D): Consideration on Business Environment of Nepal

Aashma Thapa Magar

Kathmandu University School of Management

Information on the size, distribution and characteristics of a country’s population is essential

for describing and assessing its economic, social and demographic circumstances and for
developing sound policies and programmes in such fields as education and literacy,
employment and manpower, family planning, housing, maternal and child health, rural
development, transportation and highway planning, urbanization and welfare, in-out migration
etc. aimed at fostering the welfare of a country and its population ( United Nations, 1998). The
uses of census data in business, industry, labor and research institutions have multiplied. In
most developing countries like Nepal, the availability and analyze of data has improved greatly
in recent decades which results in expand and strengths the capability of developing reforms
due to the information based on population i.e., census.
The economic activities of the people are among the most important topics of investigation in
census of population. These shades of data act as guidelines for the work of public and private
organizations, institutions, and enterprises and as material for research in various fields such
as an aid to developmental planning and policymaking. The following are some discussion
points of the national census, 2021(A.D) about the data on economic activities:
➢ Census, 2021 interprets that the Nepal has got its slowest growth in 80 years since the
average annual growth rate has been declined from 1.35% to 0.95%. This data states
that according to the most developed countries, projections of a fall in population signal
economic crisis. To support this statement: the decreasing fertility rate of Nepal over
the years from 2.516 to 1.853 leads to fall working-age populations which leads to labor
shortages and brain drain.
➢ Similarly, the decision of families to have fewer children with the average family size
or the trend of living in a unitary family is growing being 4.32 being compared to 4.88.
The reason can be the increasing living costs, increasing migration, public health and
urbanization. Parents can invest in the quality education and other basic requirements
for the well-being of their children which ultimately results in high yielding human
resources.
➢ The analysis of migration data demonstrates that the volume of internal migration to
the terai has been increased (from 50.27% to 53.66% of total population) which might
lead haphazard development in loss of farmlands effecting the country’s food security
and production-based industries.
➢ In Nepal, migration is more a necessity than a choice for family or individual survival.
The census data indicated that 21,69,478 Nepalis were living in foreign countries. This
data indicates that the working-age population inside Nepal is declining as migrants
arrive with skills and contribute to human capital development for receiving countries.
Though there is a human flight capital but at the same the GDP of Nepal is growing
through remittance which contributes 30% of total GDP of Nepalese economy.
 ➢ In the past, parents were reluctant to send their daughters to study or work abroad, but
now the situation has changed. Parents have started giving their daughters a good
education and even sending them abroad for study. In comparison to the census of 2011,
the number of Nepali women going abroad for study and work has increased by
71.09%. The impact on girl’s education and independency is increasing which
symbolize women empowerment in each sector of development.
➢ Nepal’s Population belonged to the working age group (15-65) has been increased from
64% to 67%. With the growth of the working age population, Nepal might prioritize
investment in education, work skills, empowerment, and employment for young people
to reap the benefit of the demographic dividend.
➢ Short-sightedness has led to the imbalanced distribution of population. Based on
population size from highest to lowest Madhes (20.99%), Bagmati (20.84%), Lumbini
(17.55%), Province 1 (17.03%), Sudurpaschim (9.29%), Gandaki (8.49%) and Karnali
(5.81%), the human development investment has not been equally distributed among
all provinces. The uneven population distribution creates pressure on the surrounding
area and depletion of resources and pollution in high density regions.
The above were the major highlights that reflect the Nepal’s population and its factors that
analysts could analyze and state the impact on the changes and trends that had brought in the
business environment of Nepal.

Citation:
https://kathmandupost.com/columns/2022/02/03/some-thoughts-on-the-2021-census
https://nepaleconomicforum.org/key-highlights-from-the-census-report-2021/
https://thehimalayantimes.com/nepal/nepals-population-reaches-291-million

https://censusnepal.cbs.gov.np/Home/Details?tpid=5&dcid=3479c092-7749-4ba6-9369-
45486cd67f30&tfsid=17
< Preliminary report of National Population 2021>

National Programmes of Analysis of Population Census Data as an Aid to Planning and

Policymaking (United Nations Publications, Sales No.:64. XIII.4).
<
https://www.un.org/en/development/desa/population/publications/pdf/manuals/economy/cens
us/intro.pdf>

UNFPA Nepal (2017): Population Situation Analysis of Nepal

<https://nepal.unfpa.org/sites/default/files/pub-
pdf/Nepal%20Population%20Situation%20Analysis.pdf >