Everything You Need to Know About Nepal’s Trade Deficit and the Risks Ahead
Summary
Nepal's foreign trade data for fiscal year 2025/26 shows imports growing faster than exports, leading to a widening trade deficit. India remains Nepal's largest trading partner by far, highlighting the country's import dependence and export concentration.
Key Points
- Nepal's total foreign trade reached Rs 2.172 trillion in the first eleven months of fiscal year 2025/26, a 14.78% increase from last year.
- Imports grew by 15.16% to Rs 1894 billion, outpacing export growth of 12.28% at Rs 277.97 billion, widening the trade deficit to Rs 1616.13 billion.
- The imports to exports ratio rose to 6.81, indicating Nepal imports nearly seven times more goods than it exports, underscoring structural economic imbalances.
- India dominates Nepal's trade, supplying over half of imports and buying more than 80% of exports, making Nepal highly dependent on India for trade.
