Nepal's Imports from China Cross Rs. 160 Billion, Readymade Garments Lead the List

Kathmandu – In the first six months of the fiscal year 2024/25, Nepal has imported goods worth Rs. 160.54 billion from China, according to the Department of Customs. Among the imported goods, readymade garments ranked at the top, with a total import value of Rs. 15.55 billion.

What are Nepal’s Major Imports from China?

Nepal imports a wide range of goods from China, categorized into industrial, construction, agricultural, technological, pharmaceutical, and consumer goods.

1. Industrial and Construction Materials

Nepal imports a significant amount of raw materials and equipment for industries and construction, including:

• Telecommunication equipment and parts – Rs. 14.82 billion

• Other machinery and parts – Rs. 10.63 billion

• Electrical goods – Rs. 9.16 billion

• Chemical fertilizer – Rs. 4.64 billion

• Steel rods and sheets – Rs. 1.66 billion

2. Technology and Electronics

• Computers and parts – Rs. 6.42 billion

• Smart cards (SIM cards, ID cards, etc.) – Rs. 1.03 billion

• Video televisions and parts – Rs. 1.95 billion

• Solar panels – Rs. 449.3 million

3. Agricultural and Food Products

Nepal also imports essential agricultural and food products from China, including:

• Garlic – Rs. 6.18 billion

• Apples – Rs. 3.51 billion

• Wheat products – Rs. 102.2 million

• Seasoning powder & flavors for instant noodles – Rs. 380 million

4. Pharmaceutical and Healthcare Products

• Medicines – Rs. 1.38 billion

• Medical equipment and tools – Rs. 1.70 billion

5. Consumer Goods and Fashion Items

• Readymade garments – Rs. 15.55 billion

• Shoes and sandals – Rs. 4.49 billion

• Cosmetic goods – Rs. 1.05 billion

• Textiles – Rs. 9.84 billion

Why Does Nepal Import So Much from China?

There are several key reasons why Nepal imports a large volume of goods from China:

✅ Low Cost and High Quality – Chinese goods are comparatively cheaper, making it more profitable for Nepalese traders to import from China.

✅ Geographical Proximity – Nepal shares a direct land border with China, making transportation by rail, road, and air easier and more cost-effective.

✅ Limited Domestic Industrial Capacity – Nepal lacks large-scale manufacturing, requiring imports of essential industrial and consumer goods.

✅ Trade Agreements and Simplified Import Process – Nepal and China have established strong trade relations, and Nepal benefits from reduced tariffs on certain goods.

Nepal’s Trade Deficit with China – A Growing Concern

Although Nepal imports extensively from China, its exports to China remain minimal, creating a massive trade deficit.

👉 In the first six months of this fiscal year alone, Nepal imported over Rs. 160 billion worth of goods, while exports to China were estimated to be less than Rs. 10 billion.

👉 Experts suggest that to reduce this deficit, Nepal should boost domestic production, increase the export of competitive goods, and diversify trade relations with multiple countries instead of relying heavily on China.