NRB Macroeconomic Update: India Remains Nepal’s Largest Trade Partner with Rs 173 Billion Imports

Published on October 26, 2025

According to the Nepal Rastra Bank (NRB) Mid-September 2025/26 data (Table 19: Imports of Major Commodities from India), India continues to dominate Nepal’s international trade landscape, supplying a major portion of Nepal’s essential commodities and fuels.

During the first two months of FY 2025/26, Nepal imported goods worth Rs 173.54 billion from India — an 8 percent increase compared to Rs 160.65 billion during the same period of FY 2024/25. India thus remains Nepal’s largest trading partner, accounting for a lion’s share of total imports across sectors such as petroleum, vehicles, rice, chemicals, and machinery.

Key Highlights from NRB Data

Petroleum Products: Rs 39.23 billion imported (up 2.6%) — the largest single category, representing over one-fifth of total imports from India.
Vehicles & Spare Parts: Rs 15.14 billion (up 32.9%) — reflecting stronger consumer and industrial demand for transport goods.
Rice/Paddy: Rs 5.60 billion (up 67.8%) — a sharp increase driven by higher food consumption and lower domestic yields.
Bitumen: Rs 2.28 billion (up 191.6%) — indicating rapid growth in road and infrastructure development.
Agri Equipment & Parts: Rs 1.36 billion (up 35.7%) — showing rising agricultural mechanization demand.

Other notable imports included chemicals (Rs 2.07 billion), electrical equipment (Rs 6.13 billion, +13.9%), and cosmetic goods (Rs 0.72 billion). Conversely, imports of chemical fertilizers (–91.7%) and steel sheets (–95.8%)declined significantly, likely due to sufficient stock levels and subdued industrial activity in those categories.

This continued reliance on India reflects both deep trade integration and Nepal’s dependence on Indian goods for energy, transportation, and industrial inputs. Analysts note that while growing imports indicate an improving economy, they also risk widening the bilateral trade deficit, emphasizing the need to boost Nepal’s export competitiveness.

NRB Report: Labour Migration to Saudi Arabia and Qatar Declines, Japan and Oman Surge

Overall, Nepal’s foreign-employment market continues to grow, though the direction of flow is changing. Declines in Saudi Arabia and Qatar are offset by sharp increases in Japan, Oman, and non-traditional markets, marking a gradual transition toward higher-skill and diversified overseas employment opportunities.

UAE Remains Top Job Destination for Nepali Workers with 37,381 Migrants in 2025/26

In FY 2025/26, the UAE remained Nepal’s top job destination, hosting 37,381 Nepali workers in the first two months alone — a 40% year-on-year increase. The Gulf region continues to absorb the majority of Nepali labor, with strong growth also seen in Japan and Cyprus. Total labor migration approvals (new and renewal) exceeded 136,000 during the review period.

Nepal’s Foreign Employment Rises 17.9% in FY 2025/26 – Over 90,000 Workers Leave in Two Months

In the first two months of FY 2025/26, Nepal sent 90,198 new workers abroad, up 17.9% year-on-year. The UAE, Saudi Arabia, and Qatar remained the top destinations, while Japan and Cyprus showed growth. Including renewals, total foreign employment reached 1.36 lakh workers, highlighting Nepal’s ongoing dependence on labor migration for income and remittance.

NRB Report: Nepal’s Trade with China Expands Sharply as Industrial Imports Rise 32%

Nepal’s trade with China surged in early FY 2025/26, with imports up 25.1 percent to Rs 65.17 billion, led by a 32 percent rise in industrial imports. Key drivers included telecommunication equipment, fertilizers, solar panels, and machinery, marking a shift toward industrial investment — but also highlighting growing trade imbalance concerns.

Nepal Increases Imports of Telecommunication Equipment and Machinery from China by 52%

Nepal’s imports from China climbed to Rs 65.17 billion in the first two months of FY 2025/26, up 25 percent year-on-year, led by a 52.6 percent rise in telecommunication equipment and strong demand for industrial machinery. The surge reflects rising investments in technology and infrastructure but also adds to Nepal’s trade-deficit challenge.

Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

In FY 2025/26, Nepal’s imports from China climbed 25%, totaling Rs 65.17 billion, driven mainly by solar panels, wheat products, and chemical fertilizers. The surge highlights industrial recovery and the country’s push toward renewable energy, though it also increases Nepal’s trade deficit risk due to heavy reliance on Chinese imports.

NRB Data: Nepal’s Imports from China Reach Rs 65.2 Billion in Two Months, Up 25%

In the first two months of FY 2025/26, Nepal’s imports from China climbed 25 percent, totaling Rs 65.2 billion. Growth was led by telecom equipment, fertilizers, solar panels, and PVC compounds, showing rising industrial and technology demand. While the expansion reflects economic momentum, it also deepens Nepal’s import dependency and trade-deficit concerns.

Nepal’s Imports from China Surge 25.1% in FY 2025/26 – Electronics and Machinery Lead Growth

Nepal’s imports from China climbed 25.1% in the first two months of FY 2025/26, reaching Rs. 65.17 billion, led by telecom equipment, fertilizers, machinery, and solar panels. This surge cements China’s role as Nepal’s second-largest trade partner and reflects rising industrial and technological demand.

Nepal Sees Import Boost in Vehicles (+33%) and Rice/Paddy (+68%) from India in 2025/26

In FY 2025/26, Nepal’s imports from India rose 8% to Rs. 173.54 billion, driven by strong growth in vehicle imports (+33%) and rice/paddy imports (+68%). The rise indicates revived consumer demand and agricultural dependency but also reinforces concerns about Nepal’s widening trade deficit with India.

NRB Macroeconomic Update: India Remains Nepal’s Largest Trade Partner with Rs 173 Billion Imports

Key Highlights from NRB Data

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