Nepal's trade deficit rising due excessive imports from India, other countries

Nepal's trade deficit continues to balloon due to its excessive dependence on imports from India and other countries.

Increased dependence on imported products has ballooned the country's trade deficit to Rs.111.92 billion as of the second month of the fiscal year, according to the Nepal Rastra Bank (NRB).

At the end of the last fiscal year, the trade deficit was at Rs 618.46 billion.

For example, rice imports from India rose 127.5 percent to Rs.2.66 billion in the first two months of fiscal 2014-15, reports the Kantipur Online web site.

This was despite a rise in paddy production in the country. In 2013-14, Nepal imported rice worth Rs.12.37 billion, a rise of 46.4 percent year-on-year, according to the Nepal Rastra Bank.

Paddy production in the country rose 12 percent last fiscal year, while maize production increased 10 percent.

As far as cereal imports were concerned, Nepal imported products worth Rs.28.62 billion last fiscal year, according to the Trade and Export Promotion Centre (TEPC).