Nepal-India Bilateral Trade Analysis 2023
Complete trade statistics: $8.06B total volume •Nepal deficit: $6.44B
Nepal → India
$811.46M
Exports (2023)
India → Nepal
$7.25B
Imports (2023)
Trade Balance
$6.44B
Deficit for Nepal
Total Trade
$8.06B
Combined Volume
Trade Flow Visualization
Direct trade relationship between Nepal and India. Green line shows exports from Nepal, red line shows imports.
Detailed Product Trade Analysis
Comprehensive breakdown of trade flows by product category, revealing the specialized nature of the Nepal-India commercial relationship and competitive positioning in global markets.
Nepal → India Exports
Export Market Intelligence
🎯 Strategic Export Focus
Nepal's export portfolio to India demonstrates strong diversification across multiple sectors, with vegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modified representing a key competitive advantage in this bilateral market.
India → Nepal Imports
Import Dependency Profile
📦 Import Strategy Analysis
Nepal's import pattern from India reveals significant dependencyin petroleum oils and oils from bituminous minerals, not crude: preparations n.e.c. containing by weight 70% or more of petroleum oils or oils from bituminous minerals: these being the basic constituents of the preparations: waste oils, highlighting complementary economic structures and potential supply chain optimization opportunities.
Competitive Trade Position Analysis
Market Leadership
Nepal demonstrates competitive strength in exportingvegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modified to India, leveraging comparative advantages.
Trade Complementarity
The bilateral relationship showsmoderatecomplementarity, with each country specializing in different sectors.
Growth Potential
The $8.06B trade volume indicates substantial economic integration with room for expansion in emerging sectors.
Executive Summary: Nepal-India Trade Relationship
Key Trade Highlights 2023
- Total Trade Volume: $8.06 billionrepresenting a significant bilateral economic relationship
- Trade Balance: Nepal maintains a deficit of $6.44 billion
- Export Focus: Nepal's primary exports include vegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modified, spices: cardamoms, neither crushed nor ground, non-alcoholic beverages: other than non-alcoholic beer, n.e.c. in item no. 2202.10, not including fruit or vegetable juices of heading no. 2009
- Import Dependencies: Key imports from India include petroleum oils and oils from bituminous minerals, not crude: preparations n.e.c. containing by weight 70% or more of petroleum oils or oils from bituminous minerals: these being the basic constituents of the preparations: waste oils, petroleum gases and other gaseous hydrocarbons: liquefied, n.e.c. in heading no. 2711, ferrous products: obtained by direct reduction of iron ore, in lumps, pellets or similar forms
Strategic Trade Indicators
📈 Market Position: This bilateral trade relationship represents an important regional trade partnerships, with complementary economic strengths driving sustained commercial exchange.
Historical Trade Analysis & Economic Context
Trade Evolution Timeline
2019-2023: Recent Trends
Current trade volume of $8.06B represents the culmination of evolving bilateral commercial relationships, influenced by global supply chain shifts and changing economic priorities.
2015-2019: Growth Period
Sustained expansion in bilateral trade driven by complementary economic structures, with Nepal leveraging its comparative advantages in vegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modified.
2010-2015: Foundation Building
Establishment of modern trade frameworks and reduction of barriers, facilitating increased commercial exchange and investment flows between the two economies.
Pre-2010: Early Development
Initial stages of bilateral trade relationship development, with focus on traditional export-import patterns and gradual market integration.
Key Economic Drivers
Comparative Advantage
Nepal's specialization in vegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modifiedcomplements India's demand patterns, creating natural trade synergies.
Supply Chain Integration
Deep integration in global value chains has strengthened bilateral linkages, particularly in petroleum oils and oils from bituminous minerals, not crude: preparations n.e.c. containing by weight 70% or more of petroleum oils or oils from bituminous minerals: these being the basic constituents of the preparations: waste oils.
Market Access & Trade Policy
Favorable trade agreements and market access conditions have facilitated the growth of this $8.06B bilateral relationship.
Trade Pattern Insights
Trade Relationship Outlook
The $8.06B bilateral trade volume positions this relationship for continued growth, supported by technological advancement, evolving consumer preferences, and strengthening economic ties. Key opportunities lie in expanding cooperation in emerging sectors while managing potential supply chain vulnerabilities.
Economic Impact & Strategic Outlook
Economic Impact Assessment
Trade Volume Impact
The $8.06 billion bilateral trade volume represents a important trade relationshipfor both economies.
Industrial Integration
Trade flows in vegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modified and petroleum oils and oils from bituminous minerals, not crude: preparations n.e.c. containing by weight 70% or more of petroleum oils or oils from bituminous minerals: these being the basic constituents of the preparations: waste oils demonstrate deep industrial linkages and supply chain integration.
Trade Balance Effects
Nepal's trade deficit of $6.44 billion impacts its overall economic position in this bilateral relationship.
Strategic Future Outlook
🚀Growth Opportunities
⚠️Risk Factors
🎯Strategic Recommendations
- Strengthen cooperation in high-value sectors beyond current trade patterns
- Develop alternative supply chains to reduce dependency risks
- Explore joint ventures in emerging technology sectors
- Enhance trade facilitation and reduce transaction costs
Market Position & Competitive Summary
The bilateral trade relationship between Nepal and India represents a total trade volume of $8.06 billion in 2023. This partnership demonstrates an unfavorable trade balance for Nepal, with imports exceeding exportsby $6.44 billion.
Export Strengths
Nepal's exports to India total $811.46 million, with competitive advantages in vegetable oils: palm oil and its fractions, other than crude, whether or not refined, but not chemically modified, representing $70.28M or8.7% of bilateral exports.
Import Dependencies
Imports from India amount to $7.25 billion, highlighting economic interdependence in petroleum oils and oils from bituminous minerals, not crude: preparations n.e.c. containing by weight 70% or more of petroleum oils or oils from bituminous minerals: these being the basic constituents of the preparations: waste oils, with Petroleum oils and oils from bituminous minerals, not crude: preparations n.e.c. containing by weight 70% or more of petroleum oils or oils from bituminous minerals: these being the basic constituents of the preparations: waste oils comprising22.8% of total imports.
The trade relationship reflects broader economic patterns and comparative advantages. The trade deficit indicates Nepal's strategic sourcing from India. This partnership is characterized by complementary trade flows, with each country specializing in different product categories based on their respective economic strengths, industrial capabilities, and position in global value chains.
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Access detailed trade data between Nepal and India in multiple formats.
Data Source: CEPII BACI (Base pour l'Analyse du Commerce International) • Last Updated: January 2025 • Coverage: 1995-2023