Time for Strategic Production and Innovation

Nepal has significant potential in export trade but has not made sufficient efforts to tap it. By identifying new sectors, the country can boost exports. Recently, soybean oil emerged as a promising product, with exports worth Rs 106.79 billion to India and Australia in just one year—contributing to an 82% overall export growth. Prime Minister KP Sharma Oli hailed this as a historic milestone, with exports rising from Rs 124 billion to Rs 277.03 billion in a single Fiscal Year (FY). However, this growth’s sustainability is questionable, as much of the oil relies on imported raw materials rather than domestically grown soybeans. In reality, Nepal has not actively promoted export growth or import substitution. Many locally producible goods, like fruits, vegetables and grains, continue to be imported. Supporting domestic production and making locally produced goods affordable could reduce imports and boost consumption. Nepal’s products are often uncompetitive internationally due to high costs. To lower prices, production must scale up significantly—like China’s mass production model. Instead of exporting labor, Nepal should focus on expanding domestic production and exports through long-term strategic planning.