Nepal’s Export Trends Show Strong Mid-Year Recovery in FY 2024/25

Nepal's export sector has shown a remarkable rebound in the first ten months of the fiscal year 2024/25, according to recent data. As of mid-May 2025, the country's total exports have surged to Rs. 217.9 billion—representing a significant increase from Rs. 126.2 billion during the same period in the previous fiscal year (2023/24). This sharp growth suggests renewed momentum in Nepal’s trade performance after experiencing a two-year decline following the peak in FY 2021/22.

Looking at the annual export data, Nepal had steadily increased its exports from Rs. 97.7 billion in FY 2019/20 to an impressive Rs. 200 billion in FY 2021/22. However, this growth trajectory was disrupted in FY 2022/23 and FY 2023/24, when exports fell to Rs. 157.1 billion and Rs. 152.4 billion respectively. The decline was attributed to global economic slowdowns, rising freight costs, and weaker demand for Nepalese goods in key markets such as India and the US.

Despite this downturn, the data from mid-May 2025 suggests a strong recovery is underway. The Rs. 217.9 billion mark for the first ten months of FY 2024/25 has already exceeded the total annual exports of the past two fiscal years. This performance hints that the current fiscal year could end with record-breaking export figures if the trend continues in the final two months.

The resurgence could be fueled by increased production and demand for key export items such as ready-made garments, carpets, medicinal herbs, and agricultural products. Policy reforms aimed at easing export procedures and promoting foreign trade, along with improved infrastructure and trade agreements, may have also played a role in revitalizing the sector.

Overall, the strong export figures indicate positive signs for Nepal’s external trade balance and economic resilience. The government and stakeholders will now need to sustain this momentum by addressing logistical bottlenecks and expanding access to global markets.