Nepal Sees Surge in Digital Gadget Imports Amidst Growing Trade Deficit

Nepal has witnessed a significant rise in the import of digital gadgets, particularly smartphones, in recent years. In the past month alone, the country imported smartphones worth over Rs 3.46 billion, according to data from the Customs Department.

Despite the surge in gadget imports, the country recorded a substantial trade deficit in the first month of the current fiscal year. Nepal’s trade deficit for the month of Saun stood at Rs 116.15 billion, with total trade valued at Rs 140.60 billion. Of this, Nepal managed to export goods worth only Rs 12.22 billion, while imports reached Rs 128.37 billion.

Although there was a slight decline in imports by 0.67% compared to the same month last fiscal year, exports also fell by 9.63%, further widening the trade gap.

Nepal’s trade relationship with India contributed significantly to this deficit. In the first month of the current fiscal year, the country imported goods worth Rs 77.68 billion from India, while exports to the southern neighbor amounted to just Rs 7.57 billion, resulting in a trade deficit of Rs 70.10 billion.

In terms of trade with China, Nepal imported goods valued at Rs 24.54 million, while exports to China totaled Rs 157 million. The country also incurred trade losses with other nations, including Qatar, Ukraine, Australia, Bahrain, and Malaysia.

The data underscores the ongoing challenges Nepal faces in balancing its trade, with a persistent and widening trade deficit driven by high imports and relatively low exports. The surge in digital gadget imports highlights changing consumer behavior but also raises concerns about the sustainability of Nepal’s trade balance.