Nepal earned Rs 56.87 billion from export in the review period, according to the Economic Survey of 2014/15 presented by the government in the parliament on Sunday. In the first eight months of 2012/13, country's exports had grown by 19.4 percent.Export to India and other countries fell by 9.9 percent and 0.9 percent, respectively in the first eight months of 2014/15. However, exports to China went up by 9.3 percent in the review period. Export to India, China and other countries had increased by 21.9 percent, 12.6 percent and 14.9 percent, respectively.
The economic survey shows that export of black cardamom, zinc sheets, apparels and jute products to India dropped in the review period, affecting the overall export figures.
Purshottam Ojha, former commerce secretary, reasoned the decline in export to India to easy market access of LDCs in Indian market -- the major export destination of Nepali products. "Indian government has been providing duty free access to 94 percent of products in its market to LDCs, especially from SAARC countries, inviting healthy competitio"," Ojha told Republica, adding" "Cheaper products from around the world is now available in India. Our products are failing to compete with the"."
Ojha also informed that export has declined for the first time since 2008/09. "
"Though Nepal's export to India grew by nine times from 1996 to 2002, export growth became tepid after that and finally declined to 2014/15 due to some restrictive provisions imposed by Indian government on products and tra"e," added Ojha.
Ojha termed the drop in export as alarming and said that the government should take immediate policy measures to stop the trend.
Meanwhile, country's import grew by 10.5 percent in the first eight month of 2014/15 to Rs 505.92 billion. Import had grown by 27 percent to Rs 457.85 billion in the same period of 2013/14.
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