Nepali Diaspora | Migration Trends | Nepali Migration Report | Nepalis in the US

Dawa Futi Sherpa | Source: Institute for Integrated Development Studies (IIDS)
Dawa Futi Sherpa | Source: Institute for Integrated Development Studies (IIDS)

Economy

Almost 70% of the Nepali diaspora in the US migrated post-2010: a report

Over 5.3 million Nepalis applied for the EDV program between 2012 and 2021.

By Vivek Baranwal |

The Institute for Integrated Development Studies (IIDS) on Tuesday launched a report, curating triumphs and setbacks of Nepali diaspora in the United States of America.

The report titled ‘Nepali Migrant Dreams in the American Landscape: An Exploration of the Nepali Diaspora in the United States’ incorporates multilayered experiences of Nepalis residing in the United States, IIDS said in its press release. 

Authored by Dr Arun R. Joshi, Vibhav Pradhan, and Ruzel Shrestha, the report examines “the complex processes of migration, settlement, and socio-economic integration” of Nepalis in the US.

The study also offers insights into their contributions to Nepal, broader implications of migration patterns, and issues of non-resident Nepalis, reads the press release.

The study was carried out among 1,175 respondents through a random online survey with additional 13 key informant interviews (KII), and a focused group discussion of 13 individuals belonging to diverse backgrounds.

The report extrapolates its figures taking into account 194,274 Nepalis residing in the US. Their median age is 32 and an employment rate of 76.5%, the working Nepalis number at 148,566.

The research shows that 67.9% of the diaspora migrated to the US post-2010 — with 49% arriving between 2010 and 2019, a period marked by constitution drafting and early stage of its implementation in the country and 18.9% post-2020.

Between 2012 and 2021, over 5.3 million Nepalis applied for the electronic diversity visa (EDV) program. The number increases to over 8.6 million when counting their spouse and children. As of 2021, the yearly applicants were 688,502 — positioning Nepal as the second highest among Asian countries.

On an average, 4,098 applications are selected yearly, marking it 7.45% of  

While 58% of them considered migrating to the US for education, 3% did so as armed conflict victims or refugees. 

They further considered the following reasons to migrate to the US:

 

Reason for migration Percentage
Career advancement 42
Better quality of life 38
Unstable political situtaion 26
Few or no job opportunity 25
Better job opportunities 19
Better future for children 26
Due to family or friends 8
Insecure job contract 8
Marriage 6
Parents' or grandparent's decison 6
Crime rates 4

 

Based on their survey, the study found that 59.6% of employed Nepalis sent remittances with the average individual accounting for $8,633.04. This translated into an estimated $1.28 billion in remittance inflows to Nepal in 2023, accounting for 11.6% of total remittance inflow to Nepal.

It further shows that remittance per capita contributions from the US is $6,547.62, which surpassed other major remittance-sending countries significantly. The second in the order is Qatar with per capita remittance of $4,327.96. 

“Per migrant remittance from the US is 1.51 times higher than Qatar, 2.28 than Malaysia, 1.72 than the UAE, and 1.95 times higher than Saudi Arabia,” says the report.

Such a high per capita attribute to ample range of opportunities for Nepali workers in the US, allowing them to send remittances in big numbers, stipulates the report.

Opposed to the remittance gains, Nepali students took along Rs 293.26 billion to study abroad in the last three fiscal years, including Rs 125 billion last fiscal year alone.

The study further provides insights on financial investments made by the diaspora with only 13.2% having made investments in Nepal mainly on real estate, hydro electricity and education sector, suggesting the need for more attractive opportunities or reduced barriers to engage the diaspora economically.

The findings also map income, poverty rate, employment status and demography, among others of the diaspora.

The gender composition of the diaspora is male (60.13%), female (39.4%) and others (0.47%) while their median income amounts to $45,500 and median household income to $96,250. 

The caste and ethnic group composition of the diaspora make up 89.5% of Hill (including Newar) and 11.5% of Terai (including Muslim, Tharu, Dhanuk and others) [discrepancy of 1% in reported data].

Hill Brahmin dominate the composition in their survey with 45.25% of population. And together with Hill Chhetri (20.32%), Newar (16.24%), Terai Brahmin/Chhetri (8.16%), the four groups account for 90% of total diaspora population. 

Whilst, groups like Hill Dalit (0.76%), Terai ethnic (0.48%) and Terai Dalit (0.29%) mark disparities among the diaspora population. Hill ethnic groups (6.93%) and religious groups like Muslim (within 0.77% of ‘others’) paint a similar picture.

At large, the composition findings underscores the complex layers of social and economic barriers faced by the marginalised communities in accessing migration opportunities to economies with larger income potential and quality of life. It reflects broader inequalities which have historical roots and has resulted into limited access to resources, education and networks.

The report reveals that the technology industry is the most preferred sector for Nepalis in the US with 34% working there, followed by healthcare (16.1%), finance (8.2%), education (6.9%) and food and hotel services (6.8%) among others, while 1.8% responded to being self employed and 8.4% to ‘others’.

Majority among the diaspora have attained graduate degree (48.8%), followed by undergraduate (28.6%), PhD and above (14.5%), high school passed (7.7%), and below high school (0.4%).

The report also studied the plans of Nepalis to return to their home country — 43.7% of green card holders, 48.3% of specialty professional (H1B visa), 65.1% of students (J, F1, M1 visas), and 42.4% of US citizenship holders plan to return.

The report subsequently covers the motivation Nepalis want to return to Nepal for.

About 26.84% of those who want to return to Nepal have family and friends connections, 19.98% for a post retirement life, 8.38% for ‘personal’ reasons, 5.59% see job and professional opportunities, and 1.2% due to legal reasons.

In all, the report paints a stark picture of the Nepali diaspora — a demography that has flourished over the last 15 years due to sustained migration. This growth, however, contrasts sharply with the troubling ongoing trend of mass emigration. 

While migration has undoubtedly created opportunities for many Nepalis abroad, the report also highlights the potential gains capitalising on this diaspora. From remittances to skills transfer, the country stands at a crossroads, needing to balance the outflow of its people with the strategic opportunities this migration could bring.

Vivek Baranwal is sub-editor at the_farsight.

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