A very prosperous business in the 50s was the carpet industry. According to official statistics, carpets accounted for about 60 percent of Nepal's export trade. Thousands were employed. Investors were very excited.

Not only the income for investors from carpets exported to America and European countries, but also its contribution to the internal revenue account was significant . Mainly because of the employment of thousands of people in carpet weaving, the income of carpet export reached the kitchens of the underprivileged. Nearly two hundred carpet industries were opened. 

The demand for Nepali carpets in the world market was so great that an American organization called USAID announced that it would provide 5.5 million US dollars to the Carpet Industry Association to conduct a market study project. At that time America was the second largest market for the export of Nepali carpets. However, issues such as the government's lack of support towards industrialists, unnecessarily raising the issue of child labor and the environment and trying to ruin the industry were raised from time to time. Businessmen say that the demand for carpets is still high in Europe and America. 

In the General Assembly of the Carpet Industry Association, the Minister of Industry and businessmen put forward an agenda regarding the cooperation between each other for the expansion of the industry . Industrialists were worried that the industry would collapse in the future, especially regarding child labor and the environment. At that time, industrialists were complaining that there was an attempt to reduce the market of Nepali carpets by raising the issue of child labor in neighboring India.

When the then Prime Minister Girija Prasad Koirala raised the issue of the carpet industry's impact on the environment at the Earth Conference in Rio de Janeiro, carpet businessmen protested. In the third general assembly of the association, the then industry minister Ramakrishna Tamrakar said that the government is not the only one responsible for industrial development. 

He insisted that the industries that have gone ahead institutionally also have the same responsibility in this. Industry Minister Tamrakar had announced that environment standards will be prepared . Issues such as the establishment of schools and health treatment centers for child laborers, data collection of workers and industries, the removal of the excise tax on carpets, the creation of a labor registration system, and the solution to the problem of non-payment of pesquis by workers were raised. 

After the change of 2046, the open economy policy was seen to facilitate industry operation and investment . On that occasion, the investment environment was becoming . The most flourishing business at that time was carpet manufacturing . But when a large number of workers started working on carpets, social organizations began to raise the issue of the use of child labor as propaganda rather than objectively, so a more negative message was sent against Nepali carpets. Industrialists say that carpet business, which was previously registered as a domestic industry, is politically tied to the big industry.

After the change of 2046, many issues were raised about the rights of trade unions. According to the experts, old businessmen say that the carpet industry has collapsed due to the non-cooperative policy of the government and unnatural pressure in the name of the trade union. Even now, the carpet industry is producing quality products in lesser quantity than before.