Nepal’s iron and steel exports declined sharply in the first half of the fiscal year, largely due to trade barriers imposed by India. Exports of iron sheets dropped by 80 percent, falling from Rs 4.7 billion to Rs 780 million, while MS steel strip exports collapsed from Rs 630 million to just Rs 20 million. Industry representatives, including Rajesh Agarwal, attribute the downturn to India’s 12 percent safeguard duty on steel imports and delays in renewing BIS certifications for Nepali producers such as Aarti Strips. Domestic factories are also operating at only 35–40 percent capacity due to weak demand in the construction sector.
