Indian duties batter Nepal’s steel exports, wipe out billions in earnings
Summary
India's import duties on steel have caused Nepal's steel exports to plummet by 77%, resulting in significant losses for manufacturers and highlighting challenges ahead as Nepal approaches LDC graduation.
Key Points
- India imposed a three-year safeguard duty of 11-12% on select steel products impacting Nepal’s steel exports.
- Nepal's steel exports dropped by 77.28% to Rs2.34 billion in the first eight months of the fiscal year, causing an approximate loss of Rs14 billion for manufacturers.
- The duty aims to curb cheaper imports, including from China, and applies to developing countries like Nepal despite its non-developing country status.
- Nepal’s export performance is weakened in high-value sectors amid overall export growth driven by low-value re-exports like edible oils.
- The approaching LDC graduation poses challenges to Nepal’s export competitiveness, urging stronger government coordination and shift towards higher value-added products.
