Nepal’s imports of electrical equipment rose by 7.5% in the first month of 2025/26, reaching Rs. 2.75 billioncompared to Rs. 2.56 billion in the same period last year. With a 1.9% share in total imports, the rise highlights the country’s growing investment in energy infrastructure and electrification projects.

Experts say the increase is closely tied to the expansion of hydropower plants, transmission lines, rural electrification, and urban grid upgrades. As Nepal’s electricity generation capacity grows, demand for transformers, switchgear, cables, and other electrical equipment has surged. At the same time, the growing adoption of electric vehicles (EVs), household appliances, and industrial electrification is fueling steady demand.

However, analysts caution that Nepal’s dependence on imported electrical equipment makes energy expansion costly and vulnerable to global price fluctuations. The lack of strong domestic manufacturing capacity means even basic items such as cables, meters, and transformers are largely sourced from India and China. While imports help meet immediate demand, they also widen Nepal’s trade deficit.

Looking forward, economists argue that Nepal should prioritize domestic production of electrical components through joint ventures, technology transfer, and government incentives. Such a move would not only reduce import dependency but also create jobs and strengthen the local industrial base.

Nepsetrading