December 12: Nepal’s trade deficit with India from Birgunj customs alone has reached around Rs 125 billion in the first quarter of the current fiscal year.

According to the Birgunj Customs Office, the country’s foreign trade with India has been at a deficit of Rs 120 billion between July to October this year.

In the last four months, goods worth Rs 158 billion have been imported from India through Birgunj customs. During the same period, goods worth Rs 38 billion were exported to India, according to the Birgunj Customs.

India is also Nepal's largest trading partner. Most of Nepal's imports come from India. 

The trade deficit with India through Birgunj customs is about 65 percent of the total deficit. In the first four months of the current year, the total trade deficit is Rs 185 billion.

During the review period, the country’s total foreign trade was worth Rs 264 billion including imports of Rs 224 billion and exports equal to Rs 39.56 billion. Customs data shows that India is also Nepal’s largest export market.

Around 96 percent of the total exports from Birgunj customs were to India.

China, the second-largest trading partner after India, exported goods worth Rs 13 billion to Nepal during the review period, while importing goods worth Rs 13 million. Nepal traded with 33 countries through the Birgunj Customs Office, while trade with the Czech Republic, Norway, Ireland, and Sweden were at a surplus.

Foreign trade has increased in the current fiscal year. During the corresponding period of last fiscal year, foreign trade contracted due to the pandemic. Customs officials said that the size of trade has increased, with the increase in demand in the market this year.

The Birgunj dry port mainly imports petroleum products, vehicles, spare parts, industrial raw materials, and exports food grains, refined oil, cloth, yarn, and carpets.