Indian Intelligence Agencies Raise Alarm Over Nepal’s Demographic Shift | Exclusive
The change in population has expanded terror routes into India, with ISI utilising Nepal to fund terrorism in India, particularly in Jammu and Kashmir, with cash transfers via local youth

Intelligence agencies in India are wary of the demographic shift in Nepal where the Muslim population has significantly increased from 4.2 per cent in 2001 to 5.09 per cent in 2021, especially after the monarchy’s abolition.
The Communist Party of Nepal (Maoist) played a crucial role in creating favourable conditions for Muslim settlement, establishing legal environments with job quotas and funding for madrasas in 2015. According to sources, politicians have been manipulating the situation to retain power and amass wealth, leading to a notable rise in the Muslim population near the Indo-Nepal border. The proliferation of madrasas and mosques in these regions is causing demographic shifts and raising security concerns.
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Muslim migrants, including Rohingyas from Myanmar, have settled in Nepal as part of a larger strategy. Post-monarchy, Muslim communities have organised initiatives like community radio stations, schools, and charities in cities such as Nepalgunj. In Kapilvastu district, Muslims constitute 18 per cent of the population, and Islamic influence is prominent.
Over the past decade, more than 400 mosques and madrasas have been constructed near the Nepal-India border in areas like Uttarakhand and UP, the sources told CNN-News18. In Krishnanagar, multiple madrasas, including Darul Salaam, educate students from both India and Nepal. Reports indicate that Hindu symbols on homes in border villages are being replaced with Islamic markings like 786.
This demographic shift has expanded terror routes into India. The ISI has utilised Nepal to fund terrorism in India, particularly in Jammu and Kashmir, with cash transfers occurring via local youth in 2021. Nepalese businessmen have facilitated cash handovers to conduits in India. Organisations like the Indian Mujahideen, Lashkar-e-Taiba, and Jaish-e-Mohammad have also used Nepal as a hub, as noted in a 2019 US State Department report.
Districts such as Banke, Parsa, and Rautahat have significant numbers of madrasas, nearly 4,000, mostly near the border. Muslim populations in Banke (16 per cent), Parsa (17 per cent), and Rautahat (17.2 per cent) are notably concentrated. Key madrasas and mosques include Aisha Banaat Madrasa in Nepalgunj (Banke district), Jama Masjid Rahmaniya in Bhairahawa (Rupandehi district), and Shreepur Mosque Madrasa in Birgunj (Parsa district).
These 4,000 madrasas near the Indo-Nepal border are under scrutiny for foreign funding, particularly from Pakistan and Gulf countries. The porous border between the two countries facilitates cross-border movement and institutional growth.
In Nepal’s Dang district, Muslim leaders dominate village councils and government schemes, disproportionately benefiting Muslim residents. In the Garhwa area, 602 out of 839 beneficiaries of government schemes are Muslims.
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