Why smartphones are expensive in Nepal as compared to India?

Smartphones are expensive in Nepal

India has become the best destination for technological tests and advancement. Hence, different multi-national companies like Samsung, Apple, Xiaomi, Oppo, Realme, etc. have set up their branches in India. These companies manufacture their products in India itself so there is no extra shipping cost. Most of the electronics devices that come to Nepal are shipped through India.

Contradictorily, Nepal has not been able to attract any multi-national companies. In fact, no foreign companies prefer to invest in our country due to high corruption and security issues. This has led to the high price of technology, mostly smartphones and other electronic devices.

Some of the major reasons for the high price of smartphones are enlisted below:-

  • High taxation:- Nepal has presently increased the tax rate for the import of smartphones by 5%. Hence, the total tax levied on smartphones is 18%.
  • Bound by rich nations:- Nepal is bound by two large nations India and China due to which it is almost impossible to make the smartphones cheaper than them even after including the excise duty.
  • A large chain of distribution:- The smartphones that are exported travel through different distribution channels such as dealer, wholesaler, retailer, customer, etc. which ultimately increases the price of the smartphones.

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