The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
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.
Nepal’s exports jumped 95.7% in FY 2025/26, the fastest growth in 10 years, driven by soaring shipments to India (+156.7%). Imports also grew by 11.4%, keeping the deficit large, but the export-to-import ratio improved to 16.7%. Exports to China collapsed, leaving Nepal highly reliant on India.
Nepal’s education wages rose 3.21% and health wages 3.57% in FY 2024/25, both above the national average. The steady growth underscores the strength of social sectors in supporting household incomes and service-sector stability.
Nepal’s financial and insurance sector wages rose 3.73% in FY 2024/25, reaching an index of 104.00. Strong demand for banking and fintech professionals drove wage hikes, making the sector one of the top contributors to Nepal’s service-driven wage growth.
Wages in Nepal’s information and communication sector jumped 4.35% in FY 2024/25, with the index hitting 104.58. The sector leads wage growth, fueled by demand for IT and digital services, but employers face cost pressures from talent competition.