Nepal’s Imports from China Surge 25.1% in FY 2025/26 – Electronics and Machinery Lead Growth

According to the Nepal Rastra Bank (NRB) Mid-September 2025/26 Macroeconomic Update, Nepal’s imports from China have increased significantly, underscoring stronger trade relations and higher consumer and industrial demand. The data from Table 20 (Imports of Major Commodities from China) shows that Nepal imported goods worth Rs. 65.17 billion during the first two months of FY 2025/26 — a 25.1% increase compared to Rs. 52.10 billionin the same period of FY 2024/25.

China remains Nepal’s second-largest trading partner, with rising imports in electronic goods, machinery, solar panels, textiles, and fertilizers driving the growth. Total imports from China’s major commodities reached Rs. 48.15 billion, marking a 31.9% rise, while “Other Items” grew by 9.2%, totaling Rs. 17.02 billion.

Key Import Highlights

• Telecommunication Equipment and Parts surged by 52.6%, reaching Rs. 8.06 billion, indicating expansion in Nepal’s telecom and IT infrastructure.

• Chemical Fertilizer Imports jumped to Rs. 13.66 billion, supporting agricultural demand during the monsoon season.

• Electrical Goods recorded a moderate 3.8% growth, totaling Rs. 2.95 billion.

• Solar Panels skyrocketed by 135.1%, reaching Rs. 298 million, reflecting Nepal’s ongoing shift toward renewable energy.

• P.V.C. Compounds increased sharply by 198.5%, signaling growth in manufacturing and construction activity.

• Computer and Parts Imports amounted to Rs. 2.42 billion, showing continued digital infrastructure investment.

However, some traditional goods saw a downturn — readymade garments (-41.5%), shoes and sandals (-54.4%), and metal furniture (-42.8%) — indicating changing import preferences toward higher-value machinery and electronic components.

The sharp rise in imports from China aligns with Nepal’s post-pandemic industrial recovery and construction momentum. Yet, analysts caution that the expanding import bill could pressure Nepal’s trade balance, already weighed down by high petroleum and machinery imports from India.