In the 1950s, Nepal's second export item that brought in foreign exchange was ready-made garments. In the financial year 2049/050, only 3 billion 71 million rupees were earned from the export of ready-made garments. At that time, there were 1,200 ready-made garment industries, and the workers in those factories were about 50,000.

There were about 200 active industries. More than 30 percent of the workers in the industry were foreigners. The argument of the businessmen was that they had to bring in foreign workers due to the lack of skill to prepare garments in Nepali. But today the ready-made garment industry has collapsed. Because at that time, the main market of Nepali garments in the world market was America.

The United States had informed that the quota system of Nepalese ready-made garments will be gradually reduced. In that regard, Nepalese businessmen were worried. It was estimated 32 years ago that 90 percent of Nepali industries would be closed if the US were to abolish the quota system.

2050 March 15, 2050 In the program on the current situation of ready-made clothes held in Kathmandu, the industrialists demanded that an environment be created to take the export of ready-made clothes to other countries, limited only to America. They said that such an environment should be created by the government . 

Damodar Gautam, an expert adviser and former secretary of the Chamber of Commerce and Industry, said that the feasibility study should be carried out to reach the European community including Australia, New Zealand, and Japan. But the entrepreneurs said that it is difficult to compete in the market because the cost of ready-made garments produced by the industries of India, Bangladesh and Pakistan is higher than that of Nepal. That was the special problem. 

50 million meters of cotton cloth was required to make Nepali ready-to-wear clothes. But only 2 percent of that cloth was used in Nepal. Importing all the rest from India, the production cost of Nepalese ready-made clothes was higher. Industrialists were of the opinion that if the US does not set a quota, they will not be able to compete.