Nepal’s Exports to Other Countries Fall 6.5% in 2025/26 Despite Growth in Herbs and Noodles

Nepal’s export performance to countries beyond India and China faced a setback in FY 2025/26, with overall shipments contracting by 6.5%, even as select products like herbs (+23.0%) and noodles (+59.7%) showed strong resilience. According to NRB trade data, exports to other countries stood at Rs. 4.42 billion in a single month, down from Rs. 4.49 billion a year earlier, reflecting declining competitiveness in global markets.

Traditional strongholds such as woolen carpets (-26.6%), tea (-30.9%), particle board (-56.6%), and zinc sheets (-69.4%) recorded sharp drops, dragging down the overall export momentum. Even high-value cultural products like pashmina (+5.4%) and Nepalese paper products (+9.2%) showed only modest gains, insufficient to offset the broader decline.

The data highlights a worrying pattern: Nepal’s export basket remains narrow and vulnerable, heavily reliant on a handful of commodities. While processed food items like noodles and natural herbs show promise in niche markets, the downturn in handicrafts and industrial products signals the urgent need for diversification, branding, and trade facilitation policies.