Trade Deficit with India Crosses Rs. 135 Billion: Import Dependence Deepens

Kathmandu – In the first two months of the current fiscal year 2082/83, Nepal recorded a massive trade deficit of more than Rs. 135 billion with India alone. According to the Department of Customs, imports from India reached Rs. 173.54 billion, while exports stood at just Rs. 38.35 billion.

Although Nepal and India share a traditionally close trade relationship, the data shows that Nepal has become increasingly dependent on India for essential goods. Petroleum products, vehicles, food grains, medicines, and textiles are among the major items imported from India.

On the other hand, Nepal’s exports to India are led by soybean oil, tea, ginger, spices, and carpets. Despite some growth in exports, the pace has been far slower compared to rising imports, leading to the widening deficit.

Experts warn that unless Nepal invests in import-substitution industries, export diversification, and improved product quality, the dependence on India will only increase, putting further pressure on foreign currency reserves. Strengthening competitiveness in the Indian market is seen as a crucial step to reduce the imbalance.