Nepal's share in Indian imports from South Asia down
Nepal's share in India's imports from South Asian countries has declined massively over the last decade, according to a Nepal Rastra Bank study.
The Indian import share dropped to 20 percent in 2012-13 compared to 53 percent in 2002-03, thanks to the eroding competitiveness of Nepal's exports sector, reports Kantipur Online.
Pakistan's share in India's imports from the region increased to 20 percent from just 8 percent a decade ago. Sri Lanka's share rose to 23 percent from 17 percent, and Bangladesh's share doubled to 24 percent from 12 percent over the period. Bhutan's share remained the same at 6 percent.
Nepal's former Commerce Secretary Purushottam Ojha was quoted, as saying that India's expansion of market access for other countries was a disadvantage for Nepal.
The study was prepared after consultations with 120 people, including exporters, customs and tax officers, clearance agents, containers and truck businesses representatives and quarantine officials, to identify export barriers.
The research team also talked to respondents in key cross-border trade routes, including Kakkarbhitta-Panitanki, Birat-nagar-Jogbani, Birgunj-Raxaul, Bhairahawa-Sunauli, Nepalgunj-Rupaidia and Dhangadhi-Gaurifanta.
The central bank had outsourced the study to a group of researchers from Patan Multiple Campus.
Nepal faces a trade deficit of Rs.377 billion with India as of the first 11 months of the last fiscal year, according to the NRB. The country's exports to India stood at just Rs.54 billion, against imports worth Rs.431 billion.
(Posted on 26-08-2014)