Kathmandu, June 22 -- Nepal's exports to China have sharply declined despite steady growth in shipments to India. This has exposed the widening gap in the country's trade performance with its two largest neighbours.

Exports to China fell by 41.71 percent year-on-year during the first 10 months of the current fiscal year ending in mid-May, largely due to a collapse in carpet exports, according to trade officials and exporters. Exports to India, however, grew 16 percent to Rs204.37 billion.

The decline contrasts with Nepal's export growth to India, which has been largely driven by edible oil re-exports. While exports of products such as steel, iron, cement and tea continue to struggle, edible oils have sustained overall export growth to t...