In this study, we used human development report to analyze the progress of human
development in Nepalese caste and ethnic group. Development process is affected by human
endowment, socio-cultural and political condition, organizational pattern and administrative
system as well. The well beings gaps between socio-economic gaps are narrowing. The trend
indicates good potential for more inclusive development outcome in near future. A guiding
objective of state restructuring could be reducing regional inequalities in socio-economic
development and resource endowment.