Nepal’s exports near Rs 200 billion, Grow 20.83% in 8 months as trade deficit widens

KATHMANDU: Nepal’s export sector has shown strong recovery in the first eight months of the current fiscal year, with total exports nearing Rs 200 billion and expanding by 20.83 percent, according to the Department of Customs.

Between Shrawan and Falgun of FY 2082/83, Nepal exported goods worth Rs 191.11 billion, a significant increase from Rs 158.17 billion recorded during the same period last fiscal year. The growth has been largely driven by re-export-oriented trade, particularly refined edible oils shipped to India.

Export Growth Driven by Edible Oils and Agro Products

The largest contribution to exports came from processed vegetable oils and ghee, accounting for Rs 88.83 billion in just eight months. Coffee, tea, and spices followed with Rs 13.36 billion, while yarn and fiber exports stood at Rs 8.96 billion. Carpet exports also remained strong at Rs 7.55 billion.

In Falgun alone, Nepal exported goods worth Rs 22.96 billion, indicating sustained monthly momentum.

If the current growth trajectory continues, Nepal could surpass last year’s record annual export of Rs 277 billion.

Import Growth Slows, But Volume Remains High

Despite export gains, Nepal’s import remains significantly higher. Total imports reached Rs 1,289.25 billion during the review period, marking a 12.54 percent increase year-on-year, although the growth rate has slightly slowed from 13.65 percent recorded in Magh.

Petroleum products dominated imports at Rs 209.99 billion, followed by vegetable oils and animal fats at Rs 108 billion. Other major imports included machinery (Rs 91.97 billion), iron and steel (Rs 89.74 billion), electrical equipment (Rs 88.23 billion), and vehicles (Rs 73.46 billion).

Trade Snapshot (8 Months)
Total Trade: Rs 1,480.36 billion
Exports: Rs 191.11 billion
Imports: Rs 1,289.25 billion
Trade Deficit: Rs 1,098 billion
Import/Export Ratio: 6.75

The overall trade deficit widened by 11.22 percent compared to last year, reflecting Nepal’s continued reliance on imports despite improving export performance.

Chart: Nepal’s Trade Overview (Exports vs Imports)

Trade Concentration with India and China

Nepal’s trade remains heavily concentrated with its two neighbors. Imports from India stood at Rs 724 billion, while exports to India reached Rs 156 billion. Imports from China totaled Rs 265 billion, but exports were minimal at just Rs 980 million.

Other major trade partners included Argentina (Rs 75 billion in imports), UAE (Rs 45.76 billion), and the United States, from which Nepal imported Rs 20.37 billion and exported Rs 12.80 billion.

Key Commodities: Imports vs Exports

Top Imports: Diesel (Rs 82.10 billion), crude soybean oil (Rs 81.18 billion), petrol (Rs 43.89 billion), LPG (Rs 37.31 billion), smartphones (Rs 29.93 billion)
Top Exports: Soybean oil (Rs 75.77 billion), cardamom (Rs 9.49 billion), carpets (Rs 6.53 billion)

Structural Shifts Emerging

While exports are gaining momentum, the structure remains narrow and heavily dependent on a few commodities—particularly re-export-based goods. Meanwhile, imports continue to dominate Nepal’s external sector, accounting for 87.09 percent of total trade, although slightly down from last year.

Exports, however, have expanded their share to 12.91 percent, reflecting gradual diversification and improved external demand.

The data underscores both progress and persistent structural challenges in Nepal’s trade balance, with export growth accelerating but still insufficient to offset the large and widening trade deficit.