Nepal is an important export destination for Indian engineering industry. The country’s economy which is heavily dependent on tourism for revenue earning was severely impacted during the COVID 19 pandemic. As per the World Bank, despite this slowdown, a decisive vaccine roll-out and the reopening of borders have supported the economy’s recovery, with growth estimated to have accelerated to 5.8 percent in FY22. This was also driven by strong growth in domestic demand for both consumption and investment.
| 2020-21 | 2021-22 | Growth (%) | |
|---|---|---|---|
| India’s exports to Nepal | 2398.21 | 3388.41 | 41.3% |
| India’s imports from Nepal | 24.75 | 34.26 | 38.4% |
| India’s total trade | 2423.37 | 3422.67 | 41.2% |
| India’s trade balance | 2373.87 | 3354.15 |
Nepal has a gradually expanding medical devices market which is highly based on imports. India is already a significant supplier of medical devices to Nepal with a share of around 22% in Nepal’s import basket and is second only to China in terms of rank. In recent years, Nepal has added a number of hospitals with modern medical facilities. These hospitals are continuously upgrading their testing and treatment facilities creating more opportunities for medical equipment export. In this background the Nepal Medical Show is expected to offer more opportunities for Indian medical devices exporters in Nepal.