market overview
About Kathmandu
Kathmandu, also spelled Katmandu or Kantipur, capital of Nepal. It lies in a hilly region near the confluence of the Baghmati and Vishnumati rivers, at an elevation of 4,344 feet (1,324 metres) above sea level. The city has become the country’s most important business and commercial centre through the efforts of its Newar merchant families. In the 1970s the construction of new roads and the expan- sion of air service were centred upon Kathmandu, making it the hub of the national transportation system, which for centuries was limited to footpaths.
industry overview
India accounts for 64% of Nepal’s total volume of trade
Informal trade happens in the Terai region too. These are for goods mainly produced in UP, Bihar and West Bengal to avoid high tariff and other issues such as weak infrastructure and high transportation cost. In exchange, Nepal gives goods produced in third countries.
Nepal shares a 1,868-km boundary with India, which has 20 entry and exit points for trade. India’s export items include petroleum products, iron, steel, cement, machinery and pharmaceuticals. Import items include tea, black cardamom, juices and jute products.
Kathmandu alone uses up to 4,800,000 plastic bags a day.
Plastic industry
Nepal Plastic Packaging Import is set to reach $25,678,000 by 2026 from $22,388,000, is expected to increase 2.7% per year. Germany, France and Mexico respectively ranked numbers 2, 3 and 4 in this ranking.
The plastic industry is a growing industry in Nepal which has been contributing to state revenues. It is estimated that Nepal produces 165,000 tonnes of plastic products every year. For the production of plastic goods, around 170,000 tonnes of polymer resins (raw materials) are imported from India every year.
Due to their light weight, durability, and versatility, plastics have a diverse range of applications such as various household appliances, corrosion-protected pipelines, furniture, packaging
materials, containers, automobile and aircraft parts, 3D printing, medical items and devices.
Nepal imports polyethylene, polypropylene, and polyvinyl chloride as raw materials for plastics manufacturing. These imports come either from Indian producers that offer resin on an ex-works basis or from polymer producers in the Middle East or Asia.
The fastest-growing import markets of Other Plastic Products for Nepal between 2020 and 2021 were China ($11.2M), India ($2.76M), and United States ($1.63M).
The import duty on polymers of ethylene from South Asian Association for Regional Cooperation (SAARC) countries are 6% and 13%VAT30.
Plastic products exporting countries are divided into 2 groups: SAARC countries and other countries such as India, China, Australia, USA, Malaysia, UK, Italy, Japan etc. According to the customs tariffs, the revenue for plastic products exported to Nepal from SAARC countries was 0.045 dollars per kg and the revenue for plastic products exported from other countries was 0.075 dollars per kg.
