Nepal: After Sri Lanka, Nepal is now in the grip of economic crisis. The imposition of Economic Emergency in Nepal is having an impact on India’s central trade. India’s trade has shrunk by 26 per cent since Nepal imposed a ban on imports of key items. As a result, India has incurred a loss of Rs 2,000 crore in three months. However, there has been an increase in trade in local markets.
- After Sri Lanka, Nepal was beset by economic crisis
- Restrictions on import of essential commodities in India
- The ban led to a decline in India’s trade
- Exports of goods from various states also stopped
In this regard, Alok Srivastava, general secretary of the Chamber of Commerce, said that Nepal’s economic woes have not affected India’s domestic market. But items from other parts of the country, including Rajasthan, Delhi, Kerala, Madhya Pradesh, Kanpur and Mumbai, have been banned altogether. Due to the ban on imports, goods being made in different parts of India are not going to Nepal. Trade value has also declined by 25 to 30 per cent.
Trade value declined
According to Gyanendra Kumar Singh, manager of Raxaul ICP, the government of Nepal had imposed indirect restrictions on the import of the main item since January. As a result, the trade value declined to Rs. 1 thousand 84 crores. During this period, India used to send Rs. 345 crore. In March 2022, trade between India and Nepal from Raxaul ICP was Rs 1429 crore. On the other hand, in March 2022, exports and imports of goods amounted to Rs 586 crore and Rs 200 crore, respectively. In March, a total of Rs. 786 crore was traded.
India sends US 65 6520 billion worth of goods to Nepal
Nepal imports US 65 6520 billion worth of goods from India. The share of imported goods is about 65% while it is only 12.5% from China. Nepal’s imports from India are mainly petroleum products, gems and jewelery, drug formulations and machinery, accounting for about 29 2900 billion. Other main items are spices, tea, coffee, tobacco, agricultural products, iron and steel.
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