KATHAMNDU, Oct. 27 (Xinhua) -- Nepal's trade with South Asian countries except India has remained marginal which is clearly reflected in Nepal's export to South Asian countries and import from there, Nepalese government data revealed.
Nepal's 99 percent total imports from South Asia as well as 96 percent of the country's total export to South Asia, took place with India in the last fiscal year 2015-16, in a clear indication of Nepal's poor economic regional integration in South Asia, according to Trade and Export Promotion (TPEC), under the Commerce Ministry of Nepal.
The World Bank has recently stated that South Asia is one of the least economically integrated regions with the world with regional trade taking place below five percent.
According to TEPC, Nepal's total import from South Asia in fiscal year 2015-16 that ended in mid-July, stood at 4.59 billion U.S. dollar (Nepalese Rupee 492.70 billion). Of the total import from South Asia, import from India was worth 4.54 billion U.S. dollar (Nepalese Rupee 487.59 billion) which is 99 percent of total import from South Asia.
As far as Nepal's exports to the region is concerned, Nepal exported goods worth 370 million U.S. dollar (Nepalese Rupee 39.69 billion) to India in the last fiscal which represents 96 percent of total exports to South Asia. Nepal's total export to South Asia stood at 385 million U.S. dollar (Nepalese Rupee Rs41.31 billion), according to TEPC.
Nepal's exports to South Asia stand at 58 percent of the country's total exports while import from the countries of the region stands at 63 percent compared to Himalayan country's total imports, according to the TEPC.
"Nepal has an open border and better connectivity with India and it is also the big market as well as producers of goods compared to other South Asian countries which have made Nepal more dependent on India," Purusottam Ojha, former commerce secretary of Nepal told Xinhua on Thursday .
According to him, Nepal has not revised pegged exchange rate regime with India since nearly three decades while Nepalese currency has been depreciated heavily against the US dollar over the period which have made imports from India cheaper compared to other countries.
Ojha said that after India, Nepal has bigger export potential to Bangladesh because of relatively better connectivity compared to other countries of the region.
"But, most of the Nepal's export items have been categorized under sensitive list of Bangladesh making them uncompetitive in Bangladeshi market," added Ojha. Sensitive list are the goods on which tariff reduction is not considered.
