गृहपृष्ठ ∕ Business ∕ India’s trade curbs slash Nepal’s steel exports Business India’s trade curbs slash Nepal’s steel exports KathmanduPati July 08, 2026 Kathmandu- India has sanctioned fresh hurdles for Nepal’s iron and steel exports after repeatedly disrupting tea exports that has sharply reduced shipments to its neighbour. The disruption follows India’s decision to impose a safeguard duty on steel imports and make BIS (Bureau of Indian Standards) certification mandatory for imported steel products. In December, India introduced a three-year safeguard duty of 11-12 percent on certain steel imports to curb low priced shipments. The duty is set at 12 percent in the first year, 11.5 percent in the second year and 11 percent in the third year and applies to imports from China, Vietnam and Nepal.According to Nepal’s iron and steel manufacturers the new restrictions have reduced exports to India by nearly two-thirds.Industry representatives say they have lost NPR 10.59 billion in revenue over the past 11 months because of the latest Indian trade measures. They have urged the government led by prime minister Balen Shah to engage diplomatically with New Delhi to resolve the issue.Manufacturers also warned that the restrictions have put thousands of jobs at risk and expressed concern that India could impose even stricter import controls in the future.During the first 11 months of the previous fiscal year Nepal earned NPR 15.42 billion from iron and steel exports to India. During the same period of the current fiscal year export earnings fell 68.67 percent to NPR 4.83 billion.Nepal’s annual demand for iron and steel is estimated at around 1.2 million tonnes and domestic manufacturers say they are capable of meeting that demand. India remains the country’s largest export market for steel products.Indian authorities have argued that Chinese steel is being dumped into the Indian market through Nepal and Vietnam a concern that officials say prompted the tighter import measures.According to Nepalese manufacturers, India’s new trade policy has caused economic losses of NPR 10.59 billion reduced government revenue and increased the risk of job losses. Industry representatives says that Nepal should not be subject to safeguard duties because it remains listed as a Least Developed Country (LDC). They say the measures have seriously affected both production and exports.Nepal exports around 1,45,932 tonnes of iron and steel products to India each year, worth approximately NPR 16.35 billion.Manufacturers have urged prime minister Balen Shah to negotiate with India to remove the duties imposed on Nepalese steel products, pointing to an earlier instance in which India granted concessions following diplomatic discussions over tea exports. Write your comments RELATED NEWS Govt appoints Govinda Bahadur Karki as Chief Secretary PM Balen courts private sector, pledges reforms to revive Nepal’s… NEPSE wipes out Tuesday’s gains, drops 30 points despite stronger… Nepal central bank backs 7% growth target with flexible monetary… Nepal opposition accuses government of targeting free speech US strikes Iran again, oil prices surge globally Top Headlines Before the Ballots: How Oli Lost the Political Narrative1 Monsoon is predictable and Nepal’s disaster response should be too2 Balen’s Silence Has Invited Curiosity, Confusion, and Concerns3 Nepal “a Buffer State”: Rethinking foreign policy in relative terms4 Nepal’s Political Renaissance: The rise of the RSP, the re-ordering of the old political order and the political path forward5 Jagdamba Group Chairman Shankar Agrawal Arrested6 Nepali Congress provides financial assistance for Samba’s treatment7 We will return the savings of cooperative victims within 100 days : Rabi Lamichhane8 TRENDING Pathao, Tootle resume ride sharing services after authorities relax lockdown What Makes Prithivi Narayan Shah a Philosopher and a Truly Democratic King? A phone call that paved the way for RAW Chief’s visit to Nepal What role has the Nepal Army been playing in controlling the coronavirus? Nepal Army initiates investigation into case of financial irregularities by Lieutenant Colonel Janmat Karki Army Day : Five facts about Nepal’s ‘blue helmets’ in UN-peacekeeping missions We need to be serious about the international scenario post-Covid: Dr. Nischal N. Pandey Police make a woman public in connection to Gongabu murder case
