flag Nepal Nepal: Trade Profile

Foreign Trade in Figures

Although trade policies were modified significantly after the change of government, the country seems keen to open its economy further to foreign trade and develop its exports. Foreign trade represents around 48% of GDP (World Bank, latest data available), and the country is a member of the WTO. However, significant barriers to the development of trade persist, including lack of skilled labor, advanced technology, and geographic accessibility. Nepal’s exports are led by soya-bean oil and its fractions (14.4%), palm oil and its fractions (14.3%), yarn of synthetic staple fibers (6.9%), carpets and other textile floor coverings (6.5%), fruit juices (including grape must) and vegetables (3.7%); whereas imports comprise chiefly petroleum oils (16.6%), petroleum gas and other gaseous hydrocarbons (3.8%), gold (2.9%), soya-bean oil and its fractions (whether or not) (2.5%), telephone sets (2.4% - data Comtrade 2022).

India is by far Nepal’s main trading partner, accounting for 71.9% of total exports and 63.2% of imports. Other major export partners are the United States (11.3%), Germany (2.5%), Türkiye (2.0%), and the United Kingdom (1.8%); whereas imports also come from China (13.5%), Indonesia (2.6%), the United Arab Emirates (2.3%), and the United States (2.1%).

The Nepalese trade balance is structurally in deficit. In 2022, the country exported USD 1.3 billion worth of goods against USD 13.7 billion in imports. Concerning services, exports reached USD 1.2 billion vis-à-vis 1.9 billion in imports (data WTO). For the year, the World Bank estimated the trade deficit to represent around 35.9% of GDP, compared to 32.8% one year earlier. According to statistics from the Department of Customs, foreign trade declined by 2.75% to NPR 984.77 billion in the first seven months of FY 2023/24. Imports decreased by 2.31%, amounting to goods worth NPR 897.94 billion. Despite a 7.07% decrease in exports, there was some improvement in the overall trade deficit, which stood at NPR 811.11 billion.

 
Foreign Trade Indicators 20192020202120222023
Imports of Goods (million USD) 12,3409,85615,89313,73512,476
Exports of Goods (million USD) 9688561,6841,2961,015
Imports of Services (million USD) 1,7181,0971,5652,0272,274
Exports of Services (million USD) 1,6158817981,2351,669
Imports of Goods and Services (Annual % Change) 6-211915n/a
Exports of Goods and Services (Annual % Change) 6-16-2134n/a
Trade Balance (million USD) -11,007-8,707-13,707-11,929n/a
Foreign Trade (in % of GDP) 49414349n/a
Imports of Goods and Services (in % of GDP) 41343843n/a
Exports of Goods and Services (in % of GDP) 8757n/a

Source: WTO – World Trade Organisation ; World Bank - Latest available data.

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Main Partner Countries

Main Customers
(% of Exports)
2022
India 71.9%
United States 11.3%
Germany 2.5%
Türkiye 2.0%
United Kingdom 1.8%
See More Countries 10.4%
Main Suppliers
(% of Imports)
2022
India 63.2%
China 13.5%
Indonesia 2.6%
United Arab Emirates 2.3%
United States 2.1%
See More Countries 16.2%

Source: Comtrade, Latest Available Data

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Main Products

1.3 bn USD of products exported in 2022
Soya-bean oil and its fractions, whether or not...Soya-bean oil and its fractions, whether or not refined (excl. chemically modified) 14.4%
Palm oil and its fractions, whether or not refined...Palm oil and its fractions, whether or not refined (excl. chemically modified) 14.3%
Yarn of synthetic staple fibres (excl. sewing...Yarn of synthetic staple fibres (excl. sewing thread and yarn put up for retail sale) 6.9%
Carpets and other textile floor coverings, of...Carpets and other textile floor coverings, of textile materials, knotted, whether or not made up 6.5%
Fruit juices, incl. grape must, and vegetable...Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit, whether or not containing added sugar or other sweetening matter 3.7%
See More Products 54.1%
13.7 bn USD of products imported in 2022
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 16.6%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.8%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 2.9%
Soya-bean oil and its fractions, whether or not...Soya-bean oil and its fractions, whether or not refined (excl. chemically modified) 2.5%
Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528) 2.4%
See More Products 71.8%

Source: Comtrade, Latest Available Data

 

To go further, check out our service Import controls and Export controls

To go further, check out our service Import-Export Flows

 
 

Main Services

Source: United Nations Statistics Division, Latest Available Data

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List of tariffs and local taxes that apply to your product on our service Customs Duties

 

Trade Compliance

International Conventions
Member of the World Trade Organization (WTO)
International Economic Cooperation
Member of South Asian Association for Regional Cooperation
Useful Resources
Customs Department
National Organisation of Intellectual Property
The Department of Industry.
 
 
 

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Latest Update: May 2024