Bilateral relations between Nepal and India are defined by historical socio-cultural and civilizational relations. Geographical and economic aspects also play a leading role in building relations between the two countries. It is the center of bilateral closeness – people-to-people relations.

Both countries have a large youth population. According to the Census of Nepal-2021, youth aged 15 to 29 years are 28.78 percent of the total population. On the other hand, the number of people under 35 years of age in India is 66 percent of the total population, i.e. 808 million. In the 21st century, climate change and the growing role of artificial intelligence (AI) along with technology have become important public policy issues. Young people are interested in both these subjects. Politicians of both countries talk publicly that the youth are the future of the country, but seem to fail to have a technology-friendly mindset. Nepal can play a role in the development of technology, India can learn from its achievements. In terms of climate change, cooperation between the two countries is necessary to deal with it.

What do young people want?

According to a report titled 'The ORF Foreign Policy Survey' conducted among 5,000 urban youth in the age group of 18 to 35 years in India, 85 percent of the participants said that climate change is the most important issue of current foreign policy challenges for India. In October 2023, a glacial flood occurred in the Indian state of Sikkim, bordering the Koshi region. 88 thousand 400 people were directly affected by this and 40 people lost their lives. Moreover, Sikkim's largest hydropower (1200 MW Teesta Dam) was damaged. It is a glacial climate-induced disaster. However, this accident made it clear how bad the consequences are when projects are built ignoring environmental damage and climate risks through the combination of the private and public sectors. Due to the fact that the environment of both countries is similar, Nepal is also at risk of climate disaster like that of Sikkim. However, Nepal has experienced many climate-related crises in the past. For example, the Melamchi flood in 2021 destroyed the main dam area (headworks) of the water supply project.

Nepal is in a very sensitive place from the point of view of climate risks such as earthquakes, floods, landslides, droughts and glaciers. It is estimated that the effects of climate change will be further affected in the coming days by the 'Nepal Adaptation Plan'. Currently, the temperature rise in the Hindu Kush Mountains (HKH) region, which covers most of South Asia, is higher than the global average. This area is also known as the 'Third Pole'. Moreover, along with earthquakes, the risk of avalanches and the expansion of hydroelectric power have pushed Nepal towards more risks. Natural and human-induced disasters can have a major impact on the region, as well as on the economy. An environmental impact assessment is mandatory before starting the construction of

infrastructure projects. However, it is not taken seriously in Nepal. The Biodiversity Mining Chure area is currently suffering from groundwater depletion, deforestation and population growth due to excessive stone, gravel, sand mining and boring. The climate crisis in the common border area between Nepal and India is rarely discussed in bilateral meetings. If climate disasters and environmental degradation are not a priority for politicians, then they will only be discussed in seminars by some scholars.

digital connectivity 

Nepal and India are working to address the climate crisis. There seems to be an increase in digital connectivity between them. India's Unified Payments Interface (UPI) and Nepal's National Payment Interface (NPI) will also collaborate, for which Nepal Rashtra Bank and Reserve Bank of India exchanged Terms of Reference (TOR) in February 2024. Its aim is to facilitate cross-border financial transactions. Currently, Indian notes of 500 or more are illegal in Nepal and India is also the main market of Nepal.

Thus, financial digitalization also seems practical, as it eliminates the hassle of carrying cash. It will also reduce the need for currency exchange and avoid the hassle of fake notes for Indian tourists. Financial systems around the world are becoming increasingly digital. Cross-border payments are becoming increasingly important in our globalized world. This means that Nepal also needs to be updated with global trends.

At the Global Fintech Fest 2023, Nepal's PhonePay Payment Services Limited and India's NPCI International Payments Limited informed that they are ready to launch the first 'QR' payment service between India and Nepal. Indian tourists arriving using PhonePay and VIM can scan the Pocket PhonePay Merchant QR and e-Seva Merchant QR to make payments. However, there has been a delay for such reciprocal facilities for the Nepali passengers in India.

After the spread of Covid in 2019, QR payment has become popular in Nepal. According to the first data available till September 2020, 1 lakh 95 thousand 16 transactions were completed through QR, totaling Rs 589 million. The latest data shows that from December 2023 to the middle of 2024, a total of 1 crore 25 lakh 86 thousand 268 QR transactions were completed, which was a total of Rs 38 thousand 596 million. This means - Nepalis have easily adopted online payment.

Recently, India's Department of Telecommunications has given Nepali citizens the facility to get an Indian SIM card for three months after providing proof of their Nepali citizenship, voter ID card or photo ID issued by the Nepali Mission in India. In Nepal, 72.94 percent of households now own a smartphone, which is a very large number. 

As mentioned above, the steps taken by the governments of both countries in digital partnership will benefit Nepalese citizens who go to India for tourism, medical services and studies. According to the All India Higher Education Survey 2021/22 under the Ministry of Education, Government of India, Nepali students account for the largest share of foreign students in India. This number is 13 thousand 126, which is 28 percent of all foreign students. Likewise, Nepal's contribution to India's tourism sector is huge. Nepal ranks seventh in the list of countries with the highest number of tourists. This number is 135 thousand 347, i.e. 2.19 percent of the total number of tourists. However, this figure may not be 100 percent accurate, as the number may increase due to free movement due to open borders. These figures indicate that the movement between the people of India and Nepal is continuous and that digital collaboration will facilitate it in the future.

In today's fast-changing digital world, having affordable and fast internet is not just a luxury. It is essential for daily activities and livelihood of people. Due to Nepal's landlocked environment, it has to get Internet connection from India, so about 97 percent of Internet traffic comes from the south. Many countries receive Internet through submarine cables. Internet service providers in Nepal get internet from Indian companies like Tata/Airtel.

The rise of technology is changing the way work is done in the 21st century and Nepali people are also affected by this change. According to a survey titled "Unleashing IT: Advancing Nepal's Digital Economy" conducted by the Institute for Integrated Development Studies (IIDS), 83.5 percent of the "freelancers" involved in IT service exports are 20 to 29 years old.

IDS report shows that young people are getting involved in information technology sector. But they need reliable and affordable internet to compete in international and national markets. Unfortunately, even though the global price of internet has come down, it still costs more in Nepal than in most South Asian countries. Reports from reliable sources such as the International Telecommunication Union (ITU) state that Nepalis spent 2.6 percent of their gross national income on Internet services in 2020, which is more than what most South Asian countries pay. In the budget for the financial year 2023/24, the government decided to increase the tax on fiber cable import from 10 percent to 15 percent and also added 15 percent excise duty on SIM cards. Although Nepal cannot change its geography, the government of Nepal can encourage private internet service providers to provide affordable internet by implementing strong policies and giving tax breaks. 

Internet service providers need effective incentives to build a digital infrastructure that reaches every corner. 'Fixed wireless access' can be used to provide internet in rural and mountainous areas, without the hassle of digging trenches or laying cables. Fixed wireless access allows users to 'connect' directly to the IPS tower, which is already being done in Nepal's Khumbu Valley via Everest Link. In addition to

digital connectivity, India's digital public infrastructure – also known as India Stacks – has become a global model. It is built on three main pillars – Aadhaar for digital identity, fast payments through UPI and data laws to manage data (Digital Personal Data Protection Act, 2023). The India Stack is a set of tools that allow various apps and services to share and move money and data between users, banks and financial technology (fintech) companies. This partnership has made it easier for everyone, increased choice for consumers, boosted business and made services more accessible. India has entered into an agreement with some countries to share India Stacks for free. Cross-border data flow is extremely important for international business enterprises as they move towards expanding their digital infrastructure to other countries. Nepal can learn from India's digital success. However, for that, first of all, it should be ensured that everyone can easily get a national identity card. Thus, no one is left out in this digital age.

New topics, reliable solutions

Climate change and technology, including AI, are the main topics of global discussion. In the context of climate change, youth advocacy in both countries can inspire politicians to prioritize decisions. Nepali leaders should take the responsibility of protecting the country from climate change not only by making promises in international gatherings. Even though scholars, researchers and scientists have come up with good plans to reduce the effects of climate change, politicians do not give them top priority. Therefore, the first step in combating climate change is to sensitize the politicians of both countries about climate change.

Nepal and India are working together to connect 'digitally'. But, there is a problem. Many poor and marginalized people in both countries do not know much about using digital technology, which creates a gap. If young people have access to affordable and good internet, they can learn new things and connect with others around the world.

When both countries start using the new digital payment system, they have to think about how to solve the problem in case of mistakes or fraud. It's not just about money, they also need to think about protecting people's data and protecting against cyber attacks. Nothing is said about whether laws such as the Privacy Act, 2018 and the Data Act, 2022 apply to foreign organizations involved in the collection, use or processing of personal information of those who do not have a physical presence in Nepal and are resident here.