Import India
mports of Major Commodities from India Rise by 7.6% Despite Petroleum Decline
Despite a few key declines, notably in petroleum and steel, Nepal’s overall import trajectory from India reflects a recovering and diversifying economy. The growth in industrial inputs, agriculture-related imports, and consumer durables signals rising domestic activity and future infrastructure expansion. With the total imports from India reaching Rs. 977.13 billion in eleven months, India continues to remain Nepal’s dominant trade partner. Policymakers may need to monitor the rising trade imbalance as domestic production remains insufficient to offset the growing import bill.
Sandeep Chaudhary
1 min read
Kathmandu, July 9 — Nepal's imports from India have shown a notable rebound in the first eleven months of the fiscal year 2024/25, rising by 7.6% to Rs. 977.13 billion compared to the same period in 2023/24. This marks a recovery from the -3.1% contraction recorded the previous year, driven by a surge in the import of industrial materials, agro-equipment, and key consumer goods.
Industrial and Capital Goods Lead the Growth
The import of vehicles and spare parts increased significantly by 27.2%, totaling Rs. 60.70 billion. Likewise, M.S. wire rods and coils saw a sharp rise of 64.8%, and hot-rolled sheet in coils surged by 42.5%. This uptick reflects increased construction and manufacturing activities across Nepal.
In the agricultural and processing sector, agriculture equipment imports rose by 49.7%, showing increased mechanization in Nepalese agriculture. Chemical fertilizer imports also more than doubled (+110.5%), likely to boost agricultural productivity.
Consumer Goods Show Mixed Trends
While cosmetic goods and medicines recorded modest gains (+3.6% and +9.4%, respectively), some staples saw a significant drop. Baby food and milk products declined by -15.3%, and fruits dropped by -11.6%, possibly due to shifts in consumption patterns or domestic substitutions.
On the other hand, imports of textiles and thread remained volatile — with textiles declining slightly by -3.6%, while thread rebounded with a 24.3% rise.
Petroleum and Steel Continue to Decline
The largest imported commodity, petroleum products, recorded a continued drop of -4.7%, falling to Rs. 258.09 billion. This reflects both international price moderation and possibly a decline in demand due to fuel efficiency measures or economic slowdown.
The steel sheet category witnessed a sharp -62.3% drop, while rice/paddy imports rebounded strongly by 83.7% — suggesting shifting food security strategies or price differentials.
Electronics and Machinery Stable
Imports of telecommunication equipment and other machinery parts remained strong with 6.8% and 9.6% growth respectively, indicating consistent demand from Nepal’s industrial and digital sectors.
Written by
Sandeep Chaudhary