The level of technology used in Nepalese businesses can be assessed based on traditional and modern approaches:
Traditional Technology
Nepal has a rich heritage of traditional technology, including skilled craftsmanship in various areas such as metallurgy, pottery, architecture, textile manufacturing, paper production, food technology, agriculture, and irrigation. The craftsmen possess extensive knowledge of metallurgy, pottery, and traditional techniques.
The blend of art, culture, and civil engineering technology is evident in the design of temples, pagodas, stupas, and palaces. Nepal has its own technology for textile manufacturing and Nepalese handmade carpets are renowned worldwide. Nepali paper is known for its durability and is an important export item.
In Nepal, traditional technology still thrives in areas such as metallurgy, pottery, architecture, textile and paper manufacturing, food technology, and agriculture and irrigation. Nepalese craftsmen’s knowledge in metallurgy is reflected in bronze, copper, gold, and silver images and statues in many temples and stupas.
Traditional food technology, including brewing homemade beverages and preserving meats, fruits, and vegetables, is still practiced. Kol, Pannighatta, Dhiki, and Jaatoo are still used for agriculture and irrigation.
How does its work?
After the liberalization of the economy, modern technology is increasing in Nepal. Telecommunication and internet providers are using satellite-based technologies, while the hydro-power industry and health-related services are applying sophisticated technology.
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Solar power and biotechnology are increasingly being used in agro-based industries. In education, computer technology is being used for teaching and automated and assembly-line technology is being used in private manufacturing industries.
Tribhuvan University, Purbanchan University, and Pokhara University provide higher technical education, and short-term and long-term skill-based education is provided by the Center for Technical Education and Vocational Training (CTEVT).
Importance of traditional technology
Research and development in Nepal are dominated by universities and government research agencies. Although most organizations are dependent on imported technology, the agriculture sector is utilizing new and improved technology in inaccessible areas. The government is promoting technology development in agriculture and other industries by providing facilities such as tax credits on imported technology, training and development programs, and credit availability.
Technology transfer in Nepal is facilitated through FDI, joint ventures, turnkey projects, licensing, contract manufacturing, and franchising. Multinational companies from China, India, the USA, South Korea, and Japan have transferred modern technology to Nepal through FDI.
For instance, Unilever, Ncell, Tuborg, foreign joint-venture banks, and KFC are using and facilitating the transfer of technology in Nepal. Among the countries that have established foreign investment industries in Nepal, China ranks first, followed by India, the USA, South Korea, and Japan.
The gradual increase in the number of foreign investment industries licensed for operation and employment generated from these industries indicates their role in overall industrial development.
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