India Dominates Nepal's Imports; Trade Deficit Widens with Key Partners

Kathmandu. Nepal's import trade shows a singular dominance by the neighboring country, India. As of Magh of the current fiscal year 2082/083, Nepal imported goods worth over NPR 629.29 billion solely from India. This figure accounts for more than half of the total imports.

Following India, China is Nepal's second-largest import partner, with goods worth NPR 235.38 billion entering Nepal from there. Similarly, imports from the United Arab Emirates (UAE) amounted to NPR 41.02 billion, from the United States NPR 17.44 billion, and from Indonesia NPR 12.83 billion.

The list of the top 10 countries from which Nepal imports heavily also includes Thailand, Australia, Malaysia, Ukraine, and Hong Kong. The share of exports to these countries appears extremely low in comparison to imports.

Top 10 Countries for Imports

Looking at the export scenario, India is also Nepal's largest market. In seven months, Nepal exported goods worth NPR 137.51 billion to India. However, the trade deficit with India alone stands at NPR 491.77 billion.

The United States ranks second in exports, with goods worth NPR 11.27 billion exported. Furthermore, European nations Germany and the United Kingdom (UK) are the third and fourth largest export destinations, respectively, receiving Nepali products worth NPR 2.89 billion and NPR 1.79 billion.

Japan, France, UAE, Australia, China, and Italy are also included in the list of the top 10 countries to which Nepal exports the most.

Significant Trade Imbalance with China

Analysis of the statistics reveals that Nepal faces the largest imbalance in trade with China. While imports from China exceed NPR 235 billion, exports to that country are limited to just NPR 900 million. Likewise, Nepal has a very high trade deficit with countries like the UAE and Australia. Exports to countries other than India and the US among the top 10 export destinations appear very low, remaining in the billions. Overall, the extremely slow growth rate of exports compared to imports, and the concentration of trade in only a few countries, further clarifies the growing risk of trade deficit to Nepal's economy.

Top 10 Countries for Exports