Trading Partner Portal: Nepal
Trade Overview
Nepal is a land locked country that lies along the southern part of the Himalaya Mountain range, located between India and Tibet Autonomous Region of China. The country has adopted a federal republic system of governance since 2008. Nepal celebrates its national day on 20 September.
The country has rich cultural heritage and diverse geography. It is a multiethnic, multilingual, multi-religious country nurturing 142 ethnic groups that speak 124 languages. It hosts a variety of terrain, most notably high mountain terrain in the north, mid-mountain region, valleys, foothills, and low flat lands near the border with India in the south.
Nepal’s economy is primarily dependent upon agriculture. In recent years, its service sector including trade, tourism, banking and telecommunications has continued to grow, with the IT sector growing rapidly in recent years. Manufacturing and industries remain at a moderate level. Agriculture contributes 25% to the country’s GDP, whereas service sector and industry cover 62% and 13% respectively.
As of 2025, Nepal’s GDP totaled $45.49 billion, and with a population of 29.62 million, per capita income stands at $1,535.9.
U.S. – Nepali Trade
The U.S. and Nepal saw a total of $236 million in two-way goods trade in 2025. Total goods exports from the U.S to Nepal in that same year were $112 million with top exports being agricultural products ($51 million), chemicals ($14 million), computer & electronic products ($13 million), other special classification provisions ($10 million), and transportation equipment ($8 million).
Goods imports from Nepal to the U.S. totaled $124 million, with textile and mill products being the number one import at $58 million. Other popular imports were processed foods ($31 million, apparel & accessories ($12 million), miscellaneous manufactures ($6 million), and other special classification provisions ($4 million).
California – Nepali Trade
California and Nepal have had a long-standing relationship, with a roughly 50,000 Nepali residents residing in California.
California and Nepal trade has declined over the last few years, with California goods exports to Nepal being $13 million in 2021 and dropping to $7 million in 2025. Top exports were chemicals ($3 million), agricultural products ($1 million), computer & electronic products ($1 million), non-electrical machinery ($605 thousand), and transportation equipment ($352 thousand).
Total imports from Nepal to California in 2025 was $20 million, showing a slight increase from $19 million in 2024. California is the number two importing state from Nepal, top commodities being textile mill products ($8 million), apparel & accessories ($3 million), used or secondhand merchandise ($2 million), processed foods ($2 million), and chemicals ($1 million).
FDI – Nepal
The U.S. foreign direct investment into Nepal totaled $43 million in 2025 a 3.2 % increase from the previous year.