However, a higher rate of import growth compared to exports caused the trade deficit to rise by 25 percent, creating a trade gap of more than Rs 99 billion during the period. Nepal Rastra Bank (NRB) data shows that Nepal´s trade with third countries rose by 46 percent, or higher than the rate at which trade with India grew. The share of trade with India in total trade has dropped to 56 percent. In the past, it used to hover around two-thirds of the total trade.
Exports
According to NRB data, Nepal’s exports expanded by 18.6 percent during the period and touched Rs 35.03 billion.
Exports to third countries expanded by more than 55 percent compared to the same period last year. However, India continued to remain the largest market for Nepali manufactured commodities.
Nepal exported more than Rs 20 billion worth of goods to India. Exports to third countries also crossed Rs 14 billion.
Moreover, trade records show, pulses export grew by more than 900 percent and was valued at over Rs 3.48 billion, becoming the largest export commodity of the country during the period.
With the export totaling over Rs 3 billion, hand-knotted woolen carpets became the second largest export. The regular export topper, readymade garments, dropped to third position. The garment export was valued at Rs 2.5 billion during the period.
As for exports to India, thread, zinc sheet, polyester yarn and readymade garment were the four largest export commodities.
Imports
Buoyed by remittance-based consumption, the country’s imports grew by 23 percent and touched Rs 134.08 billion during the first six months of the current fiscal year.
While imports from India crossed Rs 74 billion, imports from third countries also grew, by 44 percent to Rs 59.75 billion.
As usual, petroleum products remained the largest import items for Nepal. During the period, Nepal imported over Rs 22 billion worth of petroleum products from India.
With imports totaling Rs 8.76 billion, gold became the second largest import item. Meanwhile, vehicles and spares, the regular second largest import, dropped to third position. Nepal imported Rs 7.02 billion worth of vehicles and spares from India during the period.
Other machinery and parts and medicines were the fourth and fifth largest imports during the period.
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