Nepal’s Exports Surge 95.7% in 2025/26: Strongest Growth in a Decade

Nepal’s export sector recorded its biggest leap in a decade, with exports rising by 95.7% in FY 2025/26 to Rs. 23.93 billion, compared to Rs. 12.22 billion in the same month of the previous year. This remarkable rebound comes after a difficult 2024/25 when exports had contracted by nearly 10%.

Exports to India fueled the recovery, surging by 156.7%, making up 81.3% of Nepal’s total exports. India’s dominance as Nepal’s top trade partner highlights improved bilateral demand for Nepali goods, including electricity, agricultural products, and manufactured items. In contrast, exports to China collapsed by 65.2%, falling to just Rs. 54.8 million, exposing weak access and structural challenges in the northern market. Exports to other countries declined slightly by 1.4%, amounting to Rs. 4.42 billion.

On the other side, imports rose by 11.4%, totaling Rs. 1.43 trillion. Imports from China jumped 14.1% and from other countries 20.5%, while India—the largest supplier—saw a modest 7.5% increase. This indicates that despite higher export earnings, Nepal’s dependency on imports remains strong.

The trade deficit remains huge at Rs. -1.19 trillion, but improved slightly by 2.5%, thanks to higher exports to India. The export-to-import ratio improved to 16.7%, showing gradual progress though still very low.