The top ten imports of Nepal from India were petroleum, coal products; chemical, rubber, plastic; ferrous metals; machinery and equipment; mineral products; textiles; transport equipment; food products; motor vehicles and parts; and metals. Basically, the imports (demand) from India are pretty much price inelastic. Hence, the widening trade deficit, no matter what happens to the economy!Meanwhile, the top ten imports of Nepal from China were wearing apparel; textiles; electronic equipment; machinery and equipment; leather products; vegetables, fruits, nuts; chemical, rubber, plastic; manufacturers; metal products; and motor vehicles and parts. Basically, most of these are price elastic.
The problem is that Nepal cannot produce them as competitively as the Chinese producers do because of the industrial ills and high cost of labor. Alternatively, it can also be India’s and China’s top imports from and exports to Nepal, if we assume that exports from Nepal to India (or China) equal imports by India (or China) from Nepal.
In recent study, the top ten exports of Nepal to India were textiles; ferrous metals; chemical, rubber, plastic; crops; beverages and tobacco product; metals; vegetables, fruits, nuts; food products; minerals; and leather products.
Basically, its primary commodities. Meanwhile, the top ten exports of Nepal to China were wood products; metal products; textiles; mineral products; leather products; wearing apparel; chemical, rubber, plastic; machinery and equipment; vegetable oils an fats; and crops. Basically, no high value added products.
