Importance of Water Resource in Economic Development of Nepal - Economics Notes Grade XI

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Importance of Water Resource in Economic Development of Nepal

Rate or Importance of Water Resource in Economic Development of Nepal
Water resources are one of the important natural resources of Nepal. The economic development of Nepal largely depends upon the development of these resources. Nepal has not been able to utilize its water resource properly. The importance of water resources are:

1. Development of Agriculture:
Agriculture is the backbone of the Nepalese economy. Economic growth in Nepal is possible only through the development of agriculture sector. Irrigation facility is a pre-condition for increasing agricultural productivity. Without proper irrigation facilities, development of the agricultural sector is almost impossible. At present 66 % of the cultivated land is covered by irrigation.

2. Development of Transportation and Communication:
Energy generated from water resources can be used to run electric means of transportation such as trolley bus, cable car, Railway, ropeway, etc. and water transportation like rafting, boating, in big rivers of Nepal. Similarly, modern means of communication like radio, television, email, fax, etc. are possible only from generated energy from water resources.

3. Industries’ development:
Water is the most essential source of energy to run small, medium and large scale industries. Other sources of energy such as coal, gas, etc. are expensive which increase the cost of production. The availability of electricity at cheaper prices reduce the cost and makes goods available at lower prices. Therefore, it has great importance in the development of industries of Nepal.

4. Development of tourism industries:
Tourism industries depend upon the natural beauty of the country. Nepal is rich in rivers, lakes, waterfalls, etc. which add to the natural beauty of the country. The development and conservation of these natural beauties are essential in order to increase the number of tourists from different parts.

5. Preservation of forest resources:
Firewood provides about 75 % of the present domestic energy consumption in Nepal. Most of the rural people depend upon firewood. The development of hydro-electricity substitutes the use of firewood for energy. The excessive use of firewood is one of the causes of rapid deforestation. Thus, the development of water resources helps to preserve forest resources.

6. Export promotion:
The water resource is considered as white gold for Nepalese Economy. It can be used for the development of the industrial sector which can increase the export of goods and services. Besides, electricity is generated from water resources can be exported to earn foreign currency.

7. Employment promotion:
Proper utilization of water resources helps to develop agriculture, industry and tourism sector. Many people can get employment opportunity in these sectors.

8. Source of power:
Water resources are the source of power because hydroelectricity is an outcome of it. Nowadays, it is being used in household and industrial sector as the means of power. It can substitute the demand for petroleum products as fuel, for different sectors.

9. Source of government revenue:
The development of hydroelectricity is the source of government revenue. Increasing the production and consumption of hydropower would lead to higher revenue to the government.

10. Household use:
Water is important for almost all household uses. Most of the people either rich or poor use water for different purposes. Drinking, bathing, irrigation, etc. are important uses of water resources at the household level.

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