In a country where culture and creativity are woven into daily life, Nepal is only beginning to recognise the true economic power of its artistic and cultural sectors. The recent UNESCO Stakeholder Forum and Dialogue marked a significant milestone: the presentation of the baseline study on Kathmandu Valley’s creative economy. In partnership with the Ministry of Culture, Tourism and Civil Aviation, and FCA Nepal, UNESCO, ILO and British Council organised the Forum in Kathmandu. The research sheds light on the scale, potential, and challenges of sectors ranging from handicrafts and design to film, media, and gastronomy. It demonstrates that Nepal’s creative industries are not merely cultural expressions but engines of sustainable growth, innovation, and resilience.

The baseline assessment revealed compelling insights: 84 percent of creative practitioners are under 45, highlighting a vibrant, youth-driven sector, while handicraft exports reached Rs12 billion in 2023. Yet, despite these promising figures, practitioners face structural barriers—from limited market access to challenges in sustaining traditional art forms. The forum, which brought together policymakers, international experts, and industry leaders, underscored the urgent need for policy reform, investment, and strategic support to transform this potential into tangible economic impact. As Nepal looks toward revising its 2010 Cultural Policy, the creative economy emerges as a cultural priority and a vital pathway to inclusive development and global competitiveness.

Nepal’s creative economy is brimming with talent, yet structural and financial challenges often constrain its potential. Saurav Thapa Shrestha, co-founder of Everything Creatives Pvt Ltd, highlights that designers’ challenges are deeply tied to the structure of Nepal’s creative economy. Drawing from his career, he observes that irregular income remains a persistent issue, especially for freelancers. He points out that informal agreements and weak contractual practices create significant financial and legal vulnerabilities. “Many designers and clients have this contract issue, that they initially don’t put through, and for example, under consultant contracts also, in many cases, 15 percent TDS aren’t called for, with clients informally sending you money to your bank account,” he explains. Beyond freelancing, Shrestha adds, creative agencies themselves face barriers to scaling. “Start-ups often run with limited human resources, seeking regular work but unable to expand because of financial limitations and investors not fully understanding the value of design and its returns.”

On why many hesitate to formalise their work, Shrestha rejects the idea that formalisation itself is difficult. “In the design sector, the company can easily be established as a PAN entity or VAT entity through the Company Registrar Office or just PAN registry at the municipality level,” he says. “But many people are hesitant because government processes are hectic and tedious. With financial and legal understanding, it’s not that difficult once you are on track with these technical processes.”

For Shrestha, creating a national body dedicated to design could be transformative. “Policy-wise, I think establishing an entity as a National Creative Agency within the government can help streamline creatives across many domains that we talk about—graphics, web, jewellery, film, writing, etc.”

Education is another pressing gap. Shrestha highlights the absence of a design academy and the lack of design pathways in schools and universities. In his view, accredited programmes, integration of design education from school level, and stronger industry–academic connections are essential to preparing students for careers in diverse fields such as graphics, jewellery, publishing, and digital design.

Looking ahead, Shrestha is optimistic. “The future of design in Nepal looks very promising,” he remarks. “Clients are beginning to understand the essence of design for marketing and branding themselves.” However, he cautions that Nepali clients often undervalue design services, forcing many practitioners to rely on international markets.

Building on the baseline assessment of Kathmandu Valley’s cultural and creative industries, Neejan Lamichhane, m&e practitioner serving as research officer at Progress Inc and one of the lead authors of the baseline assessment, stresses that the figures presented in the study are only the beginning. While the data highlights the sector’s current contribution even without strong policy support or structured investment, Lamichhane sees it as a glimpse into a vast, untapped potential.

Lamichhane underscores that creative industries are not only about growth but also about resilience. “Down the road, the creative industry helps Nepal build resilience because it generates local, future-ready jobs that will reduce dependency on migration and volatile sectors,” he notes. “From crafts to digital media, all seven CCI sectors can absorb young talent, offering dignified livelihoods rooted in culture and innovation.”

On balancing authenticity with competitiveness, Lamichhane argues that Nepal must embrace its cultural uniqueness as a strength. “The best bet would be to position authenticity as its competitive edge rather than a trade-off,” he says. “Global markets increasingly value products and services that have cultural depth, an ethical production chain, and sustainability traces. All of these qualities are already present in Nepal’s creative traditions that have come from years of practice. But at the same time, strategic investment is needed in design innovation, digital tools, branding, and market access to help entrepreneurs adapt traditional practices into contemporary demand without diluting their essence.”

Recognising that 84 percent of respondents in the study were under 45, Lamichhane highlights the urgency of policy action. “First, I would formally recognise CCI as a standalone sector in national development plans, giving it budgetary and institutional weight,” he stresses. “We need creative hubs and incubators that provide training, digital infrastructure, and mentorship to young entrepreneurs. Financing schemes like low-interest loans or creative enterprise funds can help youth scale ideas into sustainable businesses.

Lamichhane also emphasises on integrating creative skills into education and TVET curricula, ensuring young people graduate with both artistic and entrepreneurial competencies. Strengthening intellectual property rights and promoting global market access through trade fairs, digital platforms, and cultural diplomacy are equally crucial to ensure the sector thrives sustainably.

The UNESCO Baseline Assessment of the Cultural and Creative Industries Stakeholder Dialogue and Forum has shed light on the realities of Nepal’s creative sector, particularly highlighting its youth-driven nature and potential in crafts, textiles, and small creative enterprises. Sudikshya Dongol, founder of Kalashala and an art educator, says, “The Forum validates many of the realities we see on the ground. The report highlights that Nepal’s cultural and creative sector is predominantly youth-driven, with strong potential in crafts, textiles and small creative enterprises, all areas that mirror the people who come to Kalashala.” She adds, “It also calls out persistent gaps: outdated policy frameworks, fragmented data, limited market access and weak capacity-building for creative professionals. These findings resonate strongly with our day-to-day work. Kalashala’s participants are young makers and emerging practitioners who need short, practical training, affordable spaces to practice and exhibit, and better market links.”

When asked about the key challenges that creative practitioners face in Nepal today, Dongol explains, “Outdated policies and weak coordination mean that cultural policy and municipal support systems are not aligned with how creative careers actually function today.” She further points out, “Limited market access remains a significant obstacle. Many makers struggle to reach fair markets and get proper value for their work. Export support, branding, and buyer linkages are limited.”

Highlighting the importance of skills beyond artistic talent, Dangol adds, “Creative professionals also need business literacy, digital skills, intellectual property awareness, and training in packaging and presentation.”

Alok Adhikari, steering the newly established Doc Lab at the Kathmandu International Mountain Film Festival (KIMFF), is focused on mentoring South Asian documentary filmmakers and cultivating international partnerships. Drawing from his experience with Film Southasia, he works on programme development and fostering emerging talent in the documentary film arena.

Discussing the UNESCO Baseline Assessment, Adhikari observes, “While the report is an important study, one of its major weaknesses is that it is heavily focused on independent filmmakers and seems to lack insights from Nepal’s mainstream film industry.” He adds, “There is a persistent gap between independent cinema and mainstream filmmaking, and it is challenging to find comprehensive data from actors, directors, and other crew members working behind the scenes.” Highlighting concerns around labour and wages, Adhikari remarks, “It is crucial to bring out issues regarding payments and working conditions for every role in filmmaking—from the lightman to stage setup personnel. Without these insights, the study offers an incomplete industry picture.”

Adhikari also addresses the evolving landscape of film in the era of YouTube and social media. “Anyone today can exercise their creativity and make films,” he notes, “but the lack of standardisation makes professional growth challenging. The announcement of Kathmandu as a UNESCO Creative City for Films has potential, but we need clarity on what major implementations have been achieved since.” He further emphasises the role of film education, explaining, “Film schools and universities could collaborate with the metropolitan authorities to create a structured, standardised framework for filmmaking education and professional practice. Much remains in limbo, and coordinated efforts are essential to strengthen Nepal’s cinematic ecosystem.”

Conversations with artisans, designers, and creators throughout the forum clarified one truth: the creative economy needs deliberate support from pottery workshops to craft studios, and generational skills risk being lost if upcoming generations are pushed solely toward science or engineering. Investment in equipment, training, mentorship, and policy acknowledgement is crucial—not just for immediate economic returns, but to sustain Nepal’s cultural legacy.