Nepal is an underdeveloped country.
A developing country , also called a less developed country or an underdeveloped country , is a nation or a sovereign state with a less developed industrial base and a low Human Development Index ( HDI ) relative to other countries . Nepal . Nepal is a developing nation , ranking 144th on the Human Development Index ( HDI ) in 2016 . Despite these challenges , Nepal is making steady progress , with the government declaring its commitment to elevate the nation from least developed country status by 2022 .