Nepal’s Foreign Trade
In the past, Nepal’s trade relation was only with India and China. But nowadays, its trade relation is with many countries of the world.
Growth and Trend of Nepalese Foreign Trade
Export and import are the two components of foreign trade. If export is greater than import, it is called trade surplus and if export is less than import, it is called trade deficit. In Nepal, both export and import are continuously increasing but the rate of growth of import is higher as compared to export. Therefore, deficit in foreign trade is also rapidly increasing.
Composition of Nepalese Foreign Trade
Principle items exported to India and foreign countries consist of jute, pulse items, oil seeds, ginger, live animals, food carpet, readymade garments, handicrafts, herbs, etc. On the other hand, Nepal imports various finished goods, semi-finished goods, machinery, raw materials of industries, equipment, chemical fertilizers, petroleum products, etc. from India, China, and overseas countries.
Direction of Foreign Trade
In the past, foreign trade was confined to India and Tibet only. But nowadays. Nepal is involved in foreign trade with other overseas countries also. However, trade deficit is ever increasing
Problems of Nepalese Foreign Trade
- Low export and high import
- Improper trade policy
- High cost of production
- Lack of publicity and advertisement
- Low production
- Slow industrial development
- Lack of trade diversification
- Tough competition with the foreign goods