Since 1996, Nepal’s exports to India have grown substantially. India is Nepal’s largest trade partner and the largest source of foreign investments, besides providing transit for almost the entire third country trade of Nepal.
India accounts for over two-third of Nepal’s merchandise trade, about one-third of trade in services, 46% of foreign direct investments, almost 100% of petroleum supplies and a significant share of inward remittance on account of pensioners and workers.
The Main items of exports from India to Nepal are petroleum products, motor vehicles and spare parts, M.S. billets, machinery and spares, medicines, hot rolled sheets, wires, coal, cement, threads and chemicals.
The main items of exports from Nepal to India are polyester yarn, textiles, jute goods, threads, zinc sheet, packaged juice, cardamom, G.I. pipe, copper wire, shoes and sandals, stones and sand.
