Exports to India have increased by 23.5 per cent in the previous nine months.
It is evident from nine months period statistics of the Current Macroeconomic and Financial Situation of Nepal released by the Nepal Rastra Bank on Wednesday.
According to the statistics, the export has reached Rs 68.43 billion in the nine months of the current Fiscal year where it was Rs 55.42 billion in the same period of one year before.
Nepal during these nine months has stimulated the exports of Fruits, Paper, and Soyabean Oil by more than 200 per cent relative to the same duration of the previous Fiscal Year.
Their export has been increased by 226.6 per cent, 289.7 per cent and 268.4 per cent respectively. Similarly, export of the Brans and Cinnamons have increased up by 127.2 per cent and 169.5 percent respectively.
Similar indicators of positive spikes have been witnessed in the exports of various other products in India.
The statistics showed that the exports which prioritised as export potential sectors in National Trade Integration Strategy 2016 has been ballooning up over the years.
Further, growing export potential has also supported the World Bank’s recommendations. It has recently recommended Nepal emphasige more exports to accelerate economic growth.
Integration of trade between India and Nepal has been growing robust over the years. It is a cue to both the country to improve trade policies and strategy to amplify trade to boost up the economy.
In spite of improving export potentials, the statistics also suggested that there is still a wide trade deficit on the Indian front.
During this period, the deficit has been rosing up by 20 per cent. The deficit in the nine months has hit the record Rs 565.5 billion.
The deficit is widened by increase in the import of agriculture equipment, chemical fertilizers, rice, and vegetable. These imports increase by 41.1 per cent, 38.9 per cent, 64.6 per cent and 13 per cent respectively in this period.
However, due to the disruption in movement of transports and policy restriction, imports of petroleum products and books and magazine has dragged the imports significantly down. It has been declined by 13.1 percent and 41.3 percent respectively.
Meanwhile, the NRB statistics also showed that the trade deficit with China also rose by 8.6 in the same period. Nepal exported Rs 796.4 million while it has imported Rs 164.1 billion. The result is the trade deficit crossed Rs 163.33 billion.
Source : THE RISING NEPAL,