India-Nepal Trade 2026: The Definitive Outlook
Future-proof your operations with expert guidance on the new era of India-Nepal trade relations and supply chain resilience.
$7.8 b
Bilateral Trade Value
Petroleum ether
Top Traded Products
SAFTA
Active Trade Agreements
~4.79%
Annual Growth Rate
India-Nepal Trade Intelligence: Market Data & Insights
AI Insight
India-Nepal trade maintains a 4.79% growth trajectory, despite total volume moderating from a 2021 peak of $10.5 billion to $7.8 billion in 2024. India remains the dominant partner, maintaining a massive trade surplus driven by essential energy exports, specifically petroleum ether ($2.25B) and steel. Nepal’s competitive exports are concentrated in processed agricultural goods like soya-bean oil ($93.4M) and spices. While recent years show a value decline, the core exchange of fuel and industrial inputs for consumer goods defines this stable bilateral market.
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Complete 5-Year Trade Overview
AI Insight
Total bilateral trade volume peaked at $10.50 billion in 2021. Since then, the market has experienced a gradual decline, reaching $7.81 billion in 2024.
Despite this recent three-year contraction, the 2024 trade figure remains 20% higher than the 2020 level of $6.48 billion, suggesting a long-term upward trend despite short-term volatility.
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Access Market IntelligenceImport & Export Breakdown
AI Insight
India maintains a significant trade surplus with Nepal. Exports peaked at $9.18 billion in 2021 and settled at $6.95 billion in 2024.
Nepal's imports to India also saw a high in 2021 at $1.31 billion, but have decreased to $867 million. The trade gap remains substantial, with India exporting roughly eight times more than it imports.
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Visualize Trade FlowsWhat India Buys from Nepal
AI Insight
The bilateral trade between India and Nepal has achieved a growth rate of 4.79%.
This positive percentage reflects a resilient economic partnership that has expanded over the five-year period. This steady growth rate indicates sustained market integration and commercial demand between the two neighboring nations, overcoming specific annual fluctuations in trade value.
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Uncover Growth NichesWhat Nepal Buys from India
AI Insight
Nepal's imports from India are heavily concentrated in energy and infrastructure. Petroleum ether is the leading import at $2.25 billion, followed by petroleum gases at $516 million.
Significant values are also seen in iron and steel products and agricultural staples like rice, emphasizing Nepal's reliance on India for essential fuel, construction materials, and food security.
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Uncover Growth NichesAnnual Growth Trends
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Nepal's top exports to India in 2024 were led by vegetable oils (soya-bean oil) valued at $93.4 million.
Other key exports include cardamoms ($60.9M), non-alcoholic beverages ($60.6M), and coated iron products. The export profile is primarily driven by processed agricultural goods, spices, and specific textile materials like jute and synthetic yarns.
India-Nepal Trade Regulations Explained
List of Trade requirements for India
Before Shipment
Documentation Required
List of Trade requirements for Nepal
Before Shipment
Documentation Required
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View Compliance ChecklistIndia-Nepal FTA Opportunities
Don’t let complex trade agreements eat into your profits. Navigate India-Nepal FTAs with ease, confirm your eligibility, and ensure you’re paying the lowest possible duty rates.
Check FTA Eligibility- SAFTA
- India-Nepal Treaty of Trade
- India-UAE CEPA
- India-ASEAN FTA
- India-Australia ECTA
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