Udaya received B.A. honours (History) degree from St. Stephen’s College, Delhi University and completed his Masters degree from Cornell University, New York. He completed his high school; (class X) from St. Joseph’s College (North Point) Darjeeling (India) and went on to completed his higher secondary (class XII) from Lawrence School, Sanawar (India).
Udaya’s interest in politics started during the Peoples’ Movement of 1989 when he was a student in Delhi University and as President of Nepal Students Union (NSU) he organized many programmes including rallies, talk programme to galvanize support for the democratic movement back home in Nepal.
Udaya was also the Vice President of International Union of Socialist Youth (IUSY), Vienna, Austria 1997-98. Udaya is from a political family, his father Sagar Shumsher Rana was Central Committee Member of the Nepali Congress and his uncle Bhara</span>t Shumsher was the leader of the opposition in the first parliament in 1959 as the leader of Gorkha Parishad.