A landlocked nation in South Asia surrounded by China, India, Bangladesh and Bhutan, the Federal Democratic Republic of Nepal imported an estimated US$12.5 billion worth of goods in 2023.

That dollar amount results from a -18% decrease from $12.3 billion in Nepalese spending 5 years earlier in 2019 and an -26.3% year-over-year slowdown from $13.7 billion during 2022.

Based on the average exchange rate for 2023, the Nepalese rupee weakened by -17.3% against the US dollar since 2019 and diluted by -5.5% from 2022 to 2023. Nepal’s weaker local currency made Nepalese imports paid for starting from the diluted Nepalese rupee relatively more expensive for imports located in Nepal.

Nepal’s top 5 imported products are processed petroleum oils, petroleum gases, iron ore reduced products, phone devices including smartphones, and hot-rolled iron or non-alloy steel products. Combined, the 5 most valuable imported goods in 2023 represent a concentration exceeding one quarter (28.6%) of the overall value of Nepalese imports.

Nepal’s Main Product Suppliers by Geography

The latest available country-specific data from 2022 shows that 94.9% of products exported from Nepal was bought by importers in: India (71.9% of the Nepalese total), United States of America (11.3%), Germany (2.5%), Türkiye (2%), United Kingdom (1.8%), France (1%), Australia (0.8%), Japan (0.8%), Canada (0.8%), Italy (also 0.8%), Netherlands (0.6%) and Denmark (also 0.6%).

Applying a continental lens, 77.5% of Nepal’s total imports by value was purchased from fellow Asian countries.

Smaller percentages came from sellers located in North America (12.1%), Europe (9.2%), Oceania (0.9%) led by Australia and New Zealand), Africa (0.2%), then Latin America (0.1%) excluding Mexico but including the Caribbean.

Given Nepal’s population of 31.1 million people, its total $12.5 billion in 2023 imports translates to roughly $325 in yearly product demand from every person in the Himalayan country. That dollar metric exceeds the average $280 per capita one year earlier during 2022.

Nepal’s Top 10 Imports

The following product groups represent the highest dollar value in Nepal’s import purchases during 2023. Also shown is the percentage share each product category represents in terms of overall imports into Nepal.

1. Mineral fuels including oil: US$2.3 billion (23% of total imports)
2. Iron, steel: $933.4 million (9.2%)
3. Electrical machinery, equipment: $745.5 million (7.4%)
4. Machinery including computers: $676.7 million (6.7%)
5. Vehicles: $486 million (4.8%)
6. Cereals: $366.7 million (3.6%)
7. Plastics, plastic articles: $315.4 million (3.1%)
8. Pharmaceuticals: $312.2 million (3.1%)
9. Vegetables: $196 million (1.9%)
10. Optical, technical, medical apparatus: $169.9 million (1.7%)

Nepal’s top 10 imports accounted for almost two-thirds (64.6%) of the overall value of its product purchases from other countries.

Imported pharmaceuticals posted the most modest decrease in value among Nepal’s top 10 import categories, down -7.6% from 2022 to 2023.

In second place were Nepal’s imports of electrical machinery and equipment (down -12.9%) trailed by the metals iron and steel (down -16.2%).

Year over year, plastics both as materials plus items made from plastic represent the greatest import decliners via a -40.8% drop.

Please note that the information presented below is at the more granular 4-digit level.

Nepal’s Top Imported Fuels

In 2023, Nepali importers spent the most on the following 10 subcategories of mineral fuels-related goods.

1. Processed petroleum oils: US$1.7 billion (down -27.1% from 2022)
2. Petroleum gases: $384.5 million (down -25.4%)
3. Coal, solid fuels made from coal: $132.6 million (down -48.3%)
4. Petroleum oil residues: $78.3 million (down -5.7%)
5. Electrical energy: $64.4 million (2022 data unavailable)
6. Coke, semi-coke: $2.5 million (down -84.4%)
7. Petroleum jelly, mineral waxes: $1.9 million (down -8.7%)
8. Coal tar oils (high temperature distillation): $808,000 (up 114.9%)
9. Asphalt/petroleum bitumen mixes: $789,000 (up 85.6%)
10. Natural bitumen, asphalt, shale: $183,000 (up 1933.3%)

Among these import subcategories, Nepali purchases of natural bitumen, asphalt and shale (up 1,933%), high temperature distilled coal tar oils (up 114.9%) then asphalt or petroleum bitumen mixes (up 85.6%) grew from 2022 to 2023.

These amounts and the percentage changes within parenthesis clearly show where the strongest demand lies for different types of imported mineral fuels including oil among businesses and consumers in Nepal.

Nepal’s Top Iron and Steel Imports

In 2023, Nepali importers spent the most on the following 10 subcategories of iron and steel.

1. Iron ore reduced products: US$308.9 million (up 19.4% from 2022)
2. Hot-rolled iron or non-alloy steel products: $261.7 million (up 48.7%)
3. Iron or non-alloy steel products (semi-finished): $133.6 million (down -53.7%)
4. Coiled iron or non-alloy steel bars, rods: $93.7 million (up 9.4%)
5. Pig iron: $28 million (down -9.8%)
6. Iron or steel scrap: $27.1 million (up 250.4%)
7. Flat-rolled stainless steel items: $16.6 million (up 181.1%)
8. Iron ferroalloys: $14.3 million (down -4.8%)
9. Flat-rolled stainless steel items (thin): $10.9 million (down -64.1%)
10. Iron or non-alloy steel items (thin): $10.3 million (down -73.5%)

Among these import subcategories, Nepali purchases of iron or steel scrap (up 250.4%), flat-rolled stainless steel items (up 181.1%), then hot-rolled iron or non-alloy steel products (up 48.7%) grew at the fastest pace from 2022 to 2023.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported iron and steel among Nepali businesses and consumers.

Nepal’s Top Imported Electronics

In 2023, Nepali importers spent the most on the following 10 subcategories of electronics including consumer-related products.

1. Phone devices including smartphones: US$274.3 million (down -15.9% from 2022)
2. Electrical converters/power units: $77.6 million (up 10.1%)
3. Insulated wire/cable: $66.6 million (up 14.5%)
4. Electrical/optical circuit boards, panels: $64.4 million (up 113.2%)
5. Electric storage batteries: $33.3 million (down -11.1%)
6. High-voltage switches, fuses: $25.2 million (up 17.6%)
7. Lower-voltage switches, fuses: $22 million (down -28.9%)
8. Electric water heaters, hair dryers: $15.9 million (down -47.1%)
9. Unrecorded sound media: $15.8 million (down -56.3%)
10. Electric motors, generators: $15.5 million (down -11.4%)

Among these import subcategories, Nepali purchases of electrical or optical circuit boards and panels (up 113.2%), high-voltage switches and fuses (up 17.6%) then insulated wire or cable (up 14.5%) grew at the fastest pace from 2022 to 2023.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported electronics among Nepali businesses and consumers.

Nepal’s Top Machinery Imports

In 2023, Nepali importers spent the most on the following 10 subcategories of machinery including computers.

1. Computers, optical readers: US$54.2 million (down -48.4% from 2022)
2. Refrigerators, freezers: $43.5 million (down -24.8%)
3. Turbo-jets: $34.4 million (up 43486.1%)
4. Sort/screen/washing machinery: $31.1 million (down -30.2%)
5. Air or vacuum pumps: $29.2 million (down -13.3%)
6. Liquid pumps and elevators: $29 million (up 0.8%)
7. Hydraulic turbines, water wheels, regulators: $26.1 million (down -16.8%)
8. Taps, valves, similar appliances: $24.4 million (down -27.8%)
9. Miscellaneous machinery: $23.4 million (down -35%)
10. Air conditioners: $23.4 million (down -12.8%)

Among these import subcategories, Nepali purchases of turbo-jets (up 43,486%) and liquid pumps and elevators (up 0.8%) grew from 2022 to 2023.

These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported machinery including computers among Nepali businesses and consumers.

See also Nepal’s Top 10 Exports, Nepal’s Top Trading Partners, India’s Top Trading Partners, Palm Oil Exports by Country and Top Cardamoms Exports & Imports by Country Plus Average Prices

Research Sources:
Central Intelligence Agency, The World Factbook Country Profiles. Accessed on October 9, 2024

International Monetary Fund, World Economic Outlook Databases (GDP based on Purchasing Power Parity). Accessed on October 9, 2024

International Trade Centre, Trade Map. Accessed on October 9, 2024

Wikipedia, Nepal. Accessed on October 9, 2024