Top 10 Countries With Highest Trade Surplus/Deficit Of Nepal

July 25, 2023 | Investopaper

Nepal’s trade deficit has seen a notable decline of 15.45 percent in the fiscal year 2022/23, covering the period from mid-July 2022 to mid-July 2023. The drop in the trade deficit can be attributed to a significant decrease in imports, which fell by 16.08 percent during this period.

Recent data released by the Customs Department reveals that the trade deficit for the entire 12-month duration of fiscal year 2079/80 has amounted to Rs 1,454.59 billion, down from Rs 1,720.41 billion recorded in the corresponding period of the preceding fiscal year.

India is the dominant trading partner of Nepal with the highest trade volume. Nepal imports goods worth over $1 trillion from India, which is substantially higher than any other partner. However, the trade deficit with India is also the largest among all countries, standing at approximately $921 billion. This indicates a heavy reliance on Indian imports, resulting in a significant trade imbalance. Similarly, Nepal imports goods valued at over $222 billion from China, but its exports to China are relatively meager, at approximately $1.77 million.

Nepal has trade surpluses with some partner countries. A trade surplus occurs when a country’s exports exceed its imports, meaning that the country is exporting more goods than it is importing from these specific partner countries. Nepal exported goods worth Rs. 918 million to Denmark, while importing goods worth Rs. 406 million, resulting in a trade surplus of Rs. 512 million. Similarly, United States is another trade partner with which Nepal has trade surplus of Rs. 146 million.

The tables below present the top 10 countries with which Nepal has trade surplus/deficit in the fiscal year 2079/80.

Top 10 Countries With Trade Surplus Of Nepal

In Rs ‘000’

SN	Partner Countries	Imports Value	Exports Value	Trade Balance
1	Denmark	406,350.47	918,416.84	512,066.37
2	United States	19,424,895.76	19,571,421.83	146,526.07
3	Norway	108,933.81	206,150.90	97,217.09
4	Algeria	465.11	73,034.39	72,569.28
5	Cambodia	74,932.85	129,355.29	54,422.44
6	Niger	650.87	52,083.41	51,432.54
7	Uruguay	33.77	41,468.90	41,435.14
8	Chad	–	41,269.69	41,269.69
9	Afghanistan	64.55	26,116.42	26,051.87
10	Latvia	21,335.29	45,184.72	23,849.43

Source: Department of Customs

Top 10 Countries With Trade Deficit Of Nepal

In Rs ‘000’

SN	Partner Countries	Imports Value	Exports Value	Trade Balance
1	India	1,027,847,540.79	106,686,404.18	(921,161,136.61)
2	China	222,715,932.50	1,765,786.34	(220,950,146.17)
3	Indonesia	41,825,547.37	314,216.15	(41,511,331.22)
4	United Arab Emirates	32,210,048.48	1,079,890.87	(31,130,157.60)
5	Argentina	24,864,160.38	7,387.63	(24,856,772.75)
6	Malaysia	22,406,983.23	312,465.27	(22,094,517.96)
7	Ukraine	18,434,682.81	10,871.29	(18,423,811.53)
8	Australia	18,601,276.08	1,614,008.20	(16,987,267.88)
9	Qatar	13,306,915.60	110,687.54	(13,196,228.05)
10	Thailand	11,289,884.12	75,278.99	(11,214,605.14)