India remains relatively insulated from the West Asia conflict due to strong domestic demand, policy buffers, and public investment, the Finance Ministry said, while warning of inflation, fiscal pressures, and wider trade deficits, with risks hinging on energy supply disruptions and global uncertainties
Nepal faces a widening trade deficit with China, driven by heavy imports and weak exports. World Bank data shows BRI projects favour Chinese firms, deepening structural imbalances and exposing Nepal’s economic vulnerabilities
India’s trade deficit narrowed to $21.88 billion in May 2025, helped by strong electronics exports and falling imports. Forex reserves rose to $696.66 billion, boosting the RBI’s ability to stabilize the rupee amid global uncertainty and geopolitical tensions
Kotak Economic Research report noted that imports in August increased further as economic activity continued to normalize and exports continued to be strong but have stagnated