mports of Major Commodities from India Rise by 7.6% Despite Petroleum Decline

Kathmandu, July 9 — Nepal's imports from India have shown a notable rebound in the first eleven months of the fiscal year 2024/25, rising by 7.6% to Rs. 977.13 billion compared to the same period in 2023/24. This marks a recovery from the -3.1% contraction recorded the previous year, driven by a surge in the import of industrial materials, agro-equipment, and key consumer goods.

Industrial and Capital Goods Lead the Growth

The import of vehicles and spare parts increased significantly by 27.2%, totaling Rs. 60.70 billion. Likewise, M.S. wire rods and coils saw a sharp rise of 64.8%, and hot-rolled sheet in coils surged by 42.5%. This uptick reflects increased construction and manufacturing activities across Nepal.

In the agricultural and processing sector, agriculture equipment imports rose by 49.7%, showing increased mechanization in Nepalese agriculture. Chemical fertilizer imports also more than doubled (+110.5%), likely to boost agricultural productivity.

Consumer Goods Show Mixed Trends

While cosmetic goods and medicines recorded modest gains (+3.6% and +9.4%, respectively), some staples saw a significant drop. Baby food and milk products declined by -15.3%, and fruits dropped by -11.6%, possibly due to shifts in consumption patterns or domestic substitutions.

On the other hand, imports of textiles and thread remained volatile — with textiles declining slightly by -3.6%, while thread rebounded with a 24.3% rise.

Petroleum and Steel Continue to Decline

The largest imported commodity, petroleum products, recorded a continued drop of -4.7%, falling to Rs. 258.09 billion. This reflects both international price moderation and possibly a decline in demand due to fuel efficiency measures or economic slowdown.

The steel sheet category witnessed a sharp -62.3% drop, while rice/paddy imports rebounded strongly by 83.7% — suggesting shifting food security strategies or price differentials.

Electronics and Machinery Stable

Imports of telecommunication equipment and other machinery parts remained strong with 6.8% and 9.6% growth respectively, indicating consistent demand from Nepal’s industrial and digital sectors.