Nepal’s Imports from India Rise 8% in FY 2025/26 – Petroleum and Vehicle Imports Dominate

Nepal’s imports from India have climbed 8% in the first two months of FY 2025/26, reaching Rs. 173.54 billion, according to the latest Nepal Rastra Bank (NRB) Mid-September 2025/26 report. The data highlights that India remains Nepal’s largest trading partner, contributing a dominant share of total imports, driven by petroleum products, vehicles, machinery, and agricultural goods.

The report shows that imports of petroleum products topped the list with Rs. 39.23 billion, marking a 2.6% rise from Rs. 38.24 billion a year earlier. Fuel alone accounts for a major portion of Nepal’s total import bill, reflecting high domestic demand for energy, transport, and industrial use. Vehicles and spare parts followed closely, jumping 32.9% to Rs. 15.14 billion, underscoring rising automobile consumption and commercial transport demand as liquidity in the banking system improved.

Other key imports include chemical fertilizers (Rs. 11 million, -91.7%), rice and paddy (Rs. 5.6 billion, +67.8%), bitumen (Rs. 2.28 billion, +191.6%), and machinery and parts (Rs. 7.59 billion, +6.2%). Likewise, telecommunication equipment imports reached Rs. 2.23 billion, despite a 16.1% decline, while readymade garment imports increased 31.7% to Rs. 2.76 billion, reflecting greater consumer and business activity.

The agriculture sector also saw a notable rise in imports of farm equipment (+35.7%) and vegetables (+44.8%), emphasizing Nepal’s ongoing dependency on Indian agricultural supplies and food products. Meanwhile, gold (+114.7%), tobacco (+175.1%), and molasses sugar (+158.4%) witnessed sharp jumps, suggesting strong seasonal and festive demand.

In total, the top 50 import items from India accounted for a significant share of Nepal’s external trade, contributing to the overall import growth of 16.2%, with India alone representing a substantial portion of this total. While the increase in imports signals economic recovery and improved consumption, economists warn that such a heavy reliance on India exposes Nepal to supply chain disruptions and trade imbalances. They recommend diversifying import sources and promoting domestic manufacturing in key sectors such as energy, agriculture, and machinery assembly to strengthen economic resilience.