Trade diversification in Nepal II Trade promotion and Marketing

Trade Diversification in Nepal 

The process of expanding trade of different items to different countries by not being limited with specific goods and countries is called trade diversification. The economic growth of the country accelerates when the trade is well developed by its diversification. Nepal also can progress in foreign trade if new areas of business are explored. The foreign trade should not be concentrated only to limited commodities and countries. 

Types of Trade Diversification. 

1. Region/country-wise diversification 

Region-wise or country-wise diversification means supplying and selling the goods produced in a region or country to another region or country. It means selling the domestic product to another region or country. Diversification of trade helps in the promotion of trade by reducing trade deficit. Nepal's foreign trade was limited only to India since the past. After the trade relations was made between Nepal and Tibet, import and export initiated with Tibet also. Nepal used to import slat, wool, sheep, goats, etc from Tibet. Similarly, Nepal used to export rice, flour, chilies, sugar, etc. to Tibet. Nepal's foreign trade was limited only with India and Tibet of China till 2020 BS. After that, Nepal extended foreign trade to overseas. The fourth five year plan (2027-2032) had adopted the principle of trade diversification. Nepal has now started to produce export quality goods and earn foreign currency by exporting them to many countries in the world. 

2. Commodity-wise diversification 

Commodity-wise diversification is the process of including different items for export. If a country needs to promote its foreign trade, it has to concentrate on commodity-wise diversification. Foreign trade should not be limited only with the production and sale of goods but should produce and sell new goods according to the demand of world market. IF we see the trend of Nepal's foreign trend, we find the commodity-wise diversification increasing more than before. Nepal used to export the items like oil cake, wood, maize, rice, pulse, etc. But nowadays it has been exporting handicrafts, woollen material, ready-made leather goods, silver jewellery, tea, live animals, carpet, ready-made garments. leather,, Nepali paper, medicinal herbs, pulse, cardamom, etc to India. Because of it, a kind of positive sign has been seen in Nepal's foreign trade. It would be better to earn more foreign currency, if we could export ready-made items rather than raw materials. 

Trade Promotion and Marketing 

Advancement of trade into higher level is called trade promotion. It is the well-developed state of trade. For the promotion of Nepal's trade, at first we need to solve the existing problems of trade. It is necessary to supply the products to the market. The product should be presented in the market in such a way as to make them desirable. 

Measures for the trade promotion and marketing 

• Exploring new markets and producing goods according to the demand of world market. 
• Focusing in the production of artistic items based on the traditional skills. 
• Formulating and implementing easy tax policy and strategy for trade promotion and marketing 
• Giving priority on the region-wise and commodity-wise trade diversification. 
• Initiating for the facility and privilege to be obtained by landlocked country. 
• Paying attention on the border management by the governement. 
• Producing good quality of goods. 
• Providing education and training to laborers. 

Efforts made by the government of Nepal for the trade promotion and marketing. 

1. Collection of the statistics of Nepal's foreign trade. 
2. Operation of training programs for ready-made garment production in order to increase the efficiency of laborers. 
3. Operation of training programs for the artisans related to Nepalese stone sculpture to increase its production. 
4. Operation of training programs for the production of Allo and Jute. 
5. Operating of training programs for women, Dalit, Adibasi, Janajati and unemployed youths to Allo thread production, development and knitting clothes. 
6. Publication of Nepal Export Trade directory by collecting the detailed description of the exporters of Nepal. 
7. Publication of Nepal trade statistics. 
8. Publication of Nepal's Bilateral Trade and Transit Agreements including the agreements made with 17 countries including SAFTA, AFTA, TIFA, BIMSTEC, etc. 
9. Publication of trade bulletin.