Chemical Imports Rise 9.8%: Nepal’s Growing Industrial Dependency

Nepal’s imports of chemicals rose by 9.8% in the first month of 2025/26, totaling Rs. 1.29 billion compared to Rs. 1.18 billion in the same period last year. With chemicals holding nearly 0.9% of total imports, the rise reflects Nepal’s growing industrial dependency on imported raw materials for production and manufacturing.

Experts say the increase in imports is linked to the expansion of pharmaceutical, food processing, plastic, paint, and cosmetics industries, all of which heavily rely on imported chemical inputs. Nepal’s limited domestic production capacity means even basic chemicals and solvents must be sourced from India, China, and other international suppliers.

Another reason behind the rising trend is Nepal’s weak industrial base. While industries are expanding in scale, the country lacks chemical research, refining, and manufacturing infrastructure, making imports the only option. At the same time, demand for processed goods, packaged food, and construction materials has increased, further boosting the consumption of imported chemicals.

Economists warn that such rising dependency could make Nepal vulnerable to price volatility in global chemical markets, foreign exchange pressure, and supply chain disruptions. They argue that the government should promote import substitution policies, joint ventures with foreign firms, and investment in local chemical plants to reduce risks. Without such initiatives, Nepal’s industrial growth will remain import-driven rather than self-sustaining.