Amid Madhesh Movement, trade deficit with India goes down

Online Khabar

Kathmandu, November 2. The Madhesh Movement, continuing for more than two months, has taken a toll on Nepal-India trade.  With the movement continuing, Nepal’s trade deficit with India has gone down. Import from India has gone down by 19 per cent, while export to the same country has decreased by 22 per cent, according to the central bank, Nepal Rastra Bank.

Compared to the corresponding period last year, trade with India has gone down by Rs 16.3 billion in the month of Bhandra, according to the central bank’s financial disclosure. In Bhadra, import from India stood at around Rs 65.55 crore, while in the corresponding period last year, it had stood at around Rs 81.85 billion.

Last year, import from India had increased by 18 per cent, compared to the preceding year. Whereas so far this year, import has decreased by 19 per cent compared to the corresponding period last year. In Bhadra, export to India also decreased by 22 per cent, compared to corresponding period last year. This Bhadra, Nepal’s import was worth Rs 6.76 billion, while in the corresponding period last year, it stood at 6.76 billion.

United Democratic Madheshi Front has been virtually shutting the Tarai for more than two months through its protests. This has stalled cross-border vehicular movement, which has taken a heavy toll on bilateral trade.

India has been imposing a covert blockade against Nepal for more than a month after promulgation of a constitution through the Constituent Assembly. Import from India for the month of Asoj has also decreased and this grim scenario is sure to reflect in the central bank’s monthly financial report. In the fiscal 2071-72 Nepal’s import from India stood at Rs 4.916 trillion, with oil export accounting for Rs 1.1 trillion.

Trade with India is likely to suffer further with Nepal signing a framework agreement with China for import of petroleum products. There’s hope that overall trade with China will surge with the import of petroleum products. –