Trade With Other Countries Expands 17.3%: Balanced Growth in 2025

Nepal’s trade with countries other than India and China experienced healthy and balanced growth in FY 2025/26, expanding by 17.3 percent. Total trade with these countries reached Rs. 359.30 billion, up from Rs. 306.41 billion in the previous year. This growth was driven by rising imports of petroleum products, industrial machinery, and consumer goods, alongside stable export earnings from textiles, handicrafts, and niche agricultural products.

Exports to other countries, however, saw a slight decline of 1.4 percent, falling to Rs. 4.42 billion. Despite this, the export share in total trade stood at 14.0 percent, indicating that Nepal still manages to maintain a diversified export base beyond India, though at a relatively small scale. Imports surged by 20.5 percent, reaching Rs. 315.04 billion, reflecting Nepal’s reliance on global markets for fuel, technology, and raw materials.

The trade deficit with other countries widened by 25 percent, rising to Rs. -27.08 billion, showing that while overall trade volume is increasing, Nepal struggles to match imports with corresponding export growth. Even so, trade with these nations remains strategically important as it reduces Nepal’s overdependence on India and China.