of Export Trade
foreign trade was confined with India till early Nepal pursued an
export expansion and trade diversification policy in its First Five
Year Plan which was launched in 1956. With further incorporation of
commodity and country-wise trade diversification policy and programmes
in the Fourth Five Year Plan (1970-1975) and subsequent liberal export
policies and strategies pursued by His Majesty's Government of Nepal
in latter years, the export sector began to grow in a favourable
manner. Destinations of Nepalese exports recorded to 78 countries and
the number of export products has gone up to 50 in the year 1992/93.
Besides, Nepal has been also carrying on its's traditional barter
trade with Tibet, the Autonomous Region of the People's of Republic of
China. Nepal's recent endeavour to embark on an open market economy
has further enhanced the scope of export growth by creating
environment conductive to the manufacturing sector.
structure of exports has undergone significant changes in the recent
years shifting towards manufactured goods. During past few years,
while the export of traditional items such as Rice, Raw Jute and other
Forest and Agro-based materials barring Pulses and Niger seeds have
declined either to non-existence or to nominal products are increasing
substantially. At present, Nepal's major export products include
Hand-knotted Woollen Carpet and Readymade Garments. These two items
together constituted 85.5 percent of total overseas export of the
country in 1992/93 whereas the share of these items in country's total
overseas export was only 4.7 percent in 1980/81.
the year 1992/93, the major markets for Nepalese export were
Germany(48%), USA(21%) and India(10%). The fundamental feature of
Nepal's direction of trade is the reduction in her exports to India.
In 1975/76 India accounted for 74.9 percent of total exports, but in
1991/92 Nepal's exports to India declined to 10.5 percent and it
remained almost the same in 1992/93. The share of overseas countries
in Nepal's exports, however, rose to 88 percent in 1991/92 and again
89.4 per cent in 1992/93 from 22.3 percent in the year 1975/76.
1990/91 the export pattern of Nepal has upward trend. Export earning,
Rs. 7344 million in 1990/91, increased to the extent of Rs. 13838
million in the year 1991/92. It further registered an improvement over
previous year at Rs. 17333 million in the year 1992/93. Commodity-wise
export performance in 1992/93 was much better in cases of Hand-knotted
Woollen Carpet, Readymade Garments, Lentils, Woollen Goods, Goat Skins
and Niger Seeds. The performance of other exportable products like
Handicrafts, Silverware and Jewellery, Leather Goods, Hides, and
Nepalese Paper and Paper Products also remained as significant as
before. Items like Cotton and Polyester Yarn, Cotton and Polyester
Fabrics, Towel and Woollen and Acrylic Blankets emerged as new
promising export products of the country in the year 1992/93.