Textile Industry in nepal

Nepal textile and cloth apparel industry directory overviews

Textile and garment cloth industries of Nepal prime role of country economy and growth after tourism sector in Nepal.This segment help to employment, live hood income and GDP. Textile weaving mainly handy craft homemade work and small textile processing house business are major resources of textile production.

Around 55 types of handicraft home textile decor items exported from Nepal to around 110 countries mainly cloth market United States and European country. Textile industry of Nepal faces severe cloth market production and raw material availability problems due to the fabrics import rules and import duty. All fabrics mainly imported from textile apparel industry of China , India and Tibet. USA is biggest importer of Nepal handicraft textile decor items and that reason there are so many house small homemade weaving cloth business generate around 6.6 million USD in the rural and hilly area of Nepal.

Some key factor of textile business of hilly Nepal :

  • Handicraft textile product export worth 7 Million USD
  • Textile items Domestic consumption-Rs. 500 million / Year
  • Us is a biggest importer of Nepal handicraft products
  • Mainly sector after tourism have textile and carpet


textile industries in nepal


The textile industry in Nepal can be traced back to early 2nd or 3rd century where the clothes were usually hand woven. Being a country with relatively cold climate, the woolen garments are primary components of the textile industry in Nepal. The close ethnic and cultural ties with India are reflected in the dressing style of the inhabitants of Nepal. The textile industry in Nepal is largely unorganized and disintegrated due to go government policies and availability of cheaper raw materials have made Nepal a trade intensive industry but there is a huge hiatus in the economic policies of the government. The clothes imported from India attract as much as 32% import duty whereas the imported garments from china are taxed at just half the rates of 17%.

This type of tax dispersion has made Nepal a nation which relies heavily on Textile Industry of China. Current policies intend to favor the Indian traders and manufacturers. The companies in Nepal have been struggling to maintain its stability. Once in its glorious stature, now the textile industry in Nepal is in shackles.


The textile industry in Nepal primarily as restricted to the traditional family business edifice wherein the maximum number of apparels were hand woven and cottage manufactured. The cottage industry was the primary component of the textile industry in Nepal. Over the years, after establishment of the spinning mills in Nepal, the spinning and weaving of yarn and cotton boosted the development phase for the industry. At its peak, the biggest importer of Nepalese products was US and the countries in EU were the biggest trading and export market for handloom products. The benchmark of the Nepali handicraft had gained a fabled status which thrusted the employment opportunities in Nepal. The laborers from neighboring countries and the foreign immigrant laborers were in large numbers.

The mill and factory owners employed them on large scale and thus gave a clear picture that Nepal textile industry has a promising future. At some point of time, the surplus production of Nepal textile industry was an inevitable option for Indian textile companies which turned to textile companies in Nepal for the purchase. At some point the industry worth $832.77 mn has been struggling to keep its existence intact which makes it a perfect place to invest and expand the business.


At present, the Indian textile companies have been in negotiation with the government of Nepal in order to promote and encourage the trade relations between both the nations. The readymade garments sector is the primary component of the textile industry apart from the handloom products. Till now, US was the biggest importer of the products but at present, the industries in Nepal are unable to function at their optimum strength. This calls for immediate measures by Government. The Chinese market is still favored by the textile industry of Nepal but lately, the authorities and trade organizations in Nepal have agreed on the union with Indian and other textile industries in south East Asian market. The future seems promising because government has regulated the rules and regulations regarding the workplace conditions which eventually has led the populace of Nepal to return to its conventional livelihood i.e. Textile industrial job. The present condition will surely change in the coming 5 years as is claimed by the Prime minister and textile industry in Nepal will again firm its roots by inviting new investment and generating mass employment.

nepal textile Business and Market