The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Soybean oil contributed 44.7% of Nepal’s total exports in FY 2025/26, reaching Rs. 10.69 billion in just one month. While cardamom, jute goods, and noodles grew strongly, traditional items like carpets, tea, and zinc sheets declined sharply, leaving exports heavily dependent on soybean oil.
In FY 2025/26, Nepal’s export share in total trade rose to 14.3%, while import dependence fell to 85.7%. Strong exports to India boosted this shift, but weak diversification and a large trade deficit remain challenges.
Nepal’s foreign trade surged 18.8% to Rs. 1.66 trillion in 2025/26, driven by a 95.7% rise in exports and an 11.4% increase in imports. While the trade deficit remains large, strong export growth—especially to India—offered some relief.
China supplied 19.6% of Nepal’s imports in FY 2025/26, worth Rs. 279.96 billion, but took just 0.2% of Nepal’s exports (Rs. 54.8 million). This widened the deficit by 14.6%, underlining one of Nepal’s most unequal trade relationships.
India dominated Nepal’s exports in FY 2025/26, taking 81.3% of total exports worth Rs. 19.45 billion, while exports to China and other countries declined. Though this boosted earnings, Nepal’s heavy reliance on India raises long-term risks.
Nepal’s export-to-import ratio rose to 16.7% in FY 2025/26, led by a sharp improvement with India at 23.3%. While this narrowed the India deficit, weak performance with China and limited diversification mean Nepal’s trade dependency remains high.
Nepal’s trade with other countries grew 17.3% in FY 2025/26, with imports rising strongly (+20.5%) and exports slipping slightly (-1.4%). While the deficit widened, diversified trade ties help Nepal reduce reliance on India and China.
In FY 2025/26, Nepal’s imports from China rose 14.1% to Rs. 279.96 billion, while exports plunged 65.2% to Rs. 54.8 million, widening the trade deficit by 14.6%. China now supplies nearly 20% of Nepal’s imports but buys almost nothing in return.
Nepal’s exports to India surged 156.7% in FY 2025/26, reaching Rs. 19.45 billion, while imports grew by 7.5% to Rs. 835.4 billion. The trade deficit with India narrowed by 8.6%, though Nepal’s heavy dependence on India for both exports and imports remains a long-term challenge.
Nepal’s trade deficit narrowed by 2.5% in FY 2025/26, as imports rose 11.4% and exports nearly doubled (+95.7%). Exports to India drove the gains, while weak performance with China and other countries kept the overall trade imbalance huge. The export-to-import ratio improved to 16.7%, but Nepal’s dependence on India deepened further.