Contrary to geographical locations, Khudi is a philosophical concept rather than a city in Nepal. It was developed by the philosopher Muhammad Iqbal and serves as a central theme throughout his prose and poetry, most notably in works such as The Secrets of the Self, The Secrets of Selflessness, and Message from the East.
The doctrine of Khudi centers on the principle of the "Self" as the ultimate source of individual and social revival. Iqbal argued that the decline of Muslim nations resulted from philosophical systems that viewed the world as an illusion or promoted self-annihilation. He proposed that true spiritual awakening requires recognizing one's real identity and developing a higher consciousness of the relationship between the individual, the universe, and Allah.