Technology is a double-edged sword. It creates opportunities while deepening gender inequality. Women and gender-nonconforming individuals face systemic barriers, from lack of access to digital technology and algorithmic biases limiting visibility to online harassment, deterring their engagement in digital spaces. These challenges translate into real-world economic disparities such as restricted networking opportunities, underrepresentation in digital entrepreneurship and exclusion from emerging job markets that demand digital skills. Without targeted interventions, women and marginalised groups will be at perpetual risk of being left behind in the digital economy and labour force, which could widen income gaps and restrict upward mobility.

Digital divide

The Nepal Media Survey 2022, based on a sample of 5,582 respondents across 77 districts, highlights that 90 percent of Nepali adults (approximately 13.3 million individuals) own at least one mobile phone, and 63 percent (around 12.2 million) have internet access. Despite this progress, gender disparities in digital engagement remain stark. In 2019, only 27 percent of women aged 15-49 used the internet, compared to 41 percent of men, with rural women’s access as low as 10 percent. Moreover, digital skills gaps persist—just 5.9 percent of women performed at least one computer-related activity in three months, compared to 16 percent of men.

By 2022, men still dominated traditional media consumption (36 percent vs 9 percent for newspapers, 52 percent vs 20 percent for radio), while women favoured emerging platforms like TikTok. Regional inequalities also remain, with internet access highest in Bagmati (76 percent) and lowest in Madhesh (50 percent)​.

Labour market, tech and gender

Nepal’s information technology (IT) sector is rapidly expanding. Even during the Covid-19 pandemic, it demonstrated resilience. In FY 2020-21, IT exports increased by 17.1 percent, contributing 1.4 percent to GDP and 5.5 percent to foreign reserves. By 2025, the market is projected to reach $288.5 million, with outsourcing generating $106.4 million. With an expected average IT spend per employee of $30.04, Nepal’s IT sector is gaining regional significance and creating new employment opportunities.

Despite these advancements, systemic gender disparities persist in Nepal’s labour force, where women’s participation is 28.7 percent, lower than men’s 53.9 percent. The digital divide exacerbates women’s exclusion from high-growth industries like IT. Limited digital literacy, lower access to devices and societal restrictions prevent women from acquiring technological skills, thereby reducing their employability.

The IT industry, despite its potential for gender inclusivity, remains dominated by men in decision-making roles. Systemic barriers restrict women’s upward mobility. Women’s improved education levels and 33.1 percent representation in Parliament have not translated into greater economic inclusion, as obstacles to business ownership, financial independence and asset control persist. Digital inclusion is crucial to bridging this gap, as access to technology directly impacts economic participation.

In Nepal’s banking sector, women constitute 46 percent of entry-level employees but only 23 percent of senior management, reflecting a broader trend of career stagnation. The lack of exposure to professional networks and digital platforms further limits their employment prospects. Digital access could enable women to bypass traditional gatekeeping structures, fostering entrepreneurship, remote work and participation in the knowledge economy.

Even for LGBTIQ+ individuals and persons with disabilities, economic exclusion is compounded by digital barriers. A UN Women study found 21 percent of LGBTIQ+ people in Nepal face employment restrictions, while others suffer denial of financial support (20 percent), confiscation of earnings (12 percent) and loss of inheritance (11 percent)​. Gender-nonconforming individuals, in particular, face sexual orientation, gender identity and expression and sex characteristics (SOGIESC)-based discrimination, restricting their access to digital-sector jobs. Workplace discrimination remains rampant, with many fearing termination if they disclose their gender identity or sexual orientation.

While digital technology empowers women and marginalised groups, it also presents new risks. Online platforms are increasingly weaponised against vulnerable individuals, with cases of digital entrapment and persecution in countries like Egypt and Tanzania. Nepal is not exempt from such dangers, as online harassment, cyberbullying and exclusionary digital practices continue to limit women, transgender and non-binary individuals’ access to information and economic opportunities.

Policy intervention

Comprehensive policy interventions are needed to bridge Nepal’s digital gender divide. Expanding digital literacy programmes, ensuring affordable access to technology, implementing workplace protections, and promoting gender-inclusive hiring in IT and other high-growth sectors are critical steps toward economic equity. The digital economy must be leveraged as a tool for empowerment, not exclusion, to achieve sustainable and inclusive growth. Nepal must expand digital literacy programmes, ensure affordable technology access and implement inclusive workplace policies.

The Constitution of Nepal grants all citizens, irrespective of gender, equality before the law. The Labour Act 2017 (2074), the Sexual Harassment at the Workplace Prevention Act 2015, and the Safe Motherhood and Reproductive Health Rights Act 2018 were enacted to enhance women's labour force participation and prevent gender-based workplace discrimination.

As a nation, fostering digital inclusion is not just a matter of social justice but an economic necessity. A digitally empowered workforce enhances productivity, innovation and overall economic growth. Society must support initiatives that equip women, transgender and non-binary individuals with the tools to compete in the digital economy. Collaborative efforts between the government, private sector and civil society are essential to create an inclusive and equitable labour market where all individuals can contribute and thrive.