Nepal’s Exports to India Surge 156.7% in 2025/26: Major Commodities Lead Growth

Nepal’s exports to India recorded a phenomenal surge of 156.7% in FY 2025/26, reaching Rs. 194.5 billion in just one month, compared to Rs. 75.8 billion in the same period of 2024/25. This sharp rise highlights India’s role as Nepal’s largest trading partner and the driving force behind the country’s export boom.

Among major commodities, soybean oil dominated the export basket with Rs. 10.7 billion in just one month, accounting for a large share of the overall increase. Other significant contributors were cardamom (+99.5%), noodles (+57%), jute goods (+31.3%), polyester yarn (+19.9%), rosin (+1.3%), and shoes & sandals (+12.2%). On the other hand, several traditional exports like tea (-28.9%), particle board (-56.6%), zinc sheets (-69.4%), woolen carpets (-26.6%), and ginger (-55.3%) saw steep declines, showing uneven performance across categories.

Interestingly, palm oil, once a key export to India, fell by 78.7%, reflecting shifting trade patterns and market restrictions. Meanwhile, newer processed and agro-based products like noodles and cardamom showed resilience, contributing to diversification within the India-focused export portfolio.

Overall, Nepal’s trade with India in 2025/26 highlights both opportunities and risks: while the export surge strengthens Nepal’s foreign earnings, the heavy reliance on a handful of commodities like soybean oil underlines the need for long-term export diversification and value-added industries.