Kathmandu, April 7 -- The imposition of hefty import duties by India on iron and steel products has sharply dented Nepal's export potential, causing losses of billions of rupees and pushing domestic manufacturers into crisis.

Nepal's iron and steel exports plunged by 77.28 percent to Rs2.34 billion in the first eight months of the current fiscal year, down from Rs16.35 billion in the same period last year.

Industry insiders say the slump has translated into a loss of around Rs14 billion for manufacturers who had invested heavily targeting the Indian market.

The downturn follows India's move to impose a three-year safeguard duty ranging from 11 percent to 12 percent on select steel products, alongside earlier requirements related to Bur...