Nepal’s steel industry is facing unexpected hurdles after India implemented a new import regulation aimed at increasing oversight on goods from China. The rule, requiring stricter declarations of origin, has inadvertently affected Nepalese steel exports. Since many Nepali exporters rely on third-country materials, the new requirement places an administrative burden on them and causes significant delays at Indian borders.
This development has sparked concern among Nepalese manufacturers and trade officials, who argue that the rule is not only disrupting bilateral trade but also undermining long-standing trade relationships. The policy shift was primarily targeted at curbing Chinese transshipment through neighboring countries, but it now threatens Nepal’s fragile industrial sector.
With over 80% of Nepal’s steel exports headed to India, the country is urgently calling for exemptions or modifications to the rule to preserve its economic interests. Meanwhile, Indian authorities are being pressed to reconsider the implementation in light of its broader regional implications.
Vietnam Steel by Hoa Sen Group
