Nepal's readymade garment industry, which collapsed two decades ago, has started to flourish again. According to the Nepal Readymade Garment Industry Association, the export of ready-made garments, which fell to 1 billion a year until a few years ago, has now reached 10 billion rupees.

According to the association, the new reciprocal customs announced by the US has brought new opportunities as well as challenges to Nepal's ready-made garment exports. According to the association, even though there is an opportunity for profit due to lower customs duty for Nepal compared to neighboring countries like India, Bangladesh, and China, there is also a possibility of dumping goods from third countries in Nepal. Pashupatidev Pandey, president of the association, said that the matter was discussed with the representative of the American Embassy.

The new reciprocal customs announced by the US on April 2 has brought both new opportunities and challenges to our ready-to-wear exports. We have also discussed this in detail with the representative of the American Embassy,'' President Pandey said at the 30th General Meeting of the Association on Thursday, 'It has made clear where the opportunities and challenges are for Nepal. It is expected that its influence will be seen in the upcoming policy making.' 

He said that the major challenge of transshipment has emerged in the export of ready-made garments. He also urged the government to make the export process systematic and efficient by discouraging transshipment. He also demanded the government to include the ready-made garment industry in the facility under the Nepal Trade Preference Program (NTPP). He said that if this is done, long-term presence in the American market will be ensured.

As there is a huge potential for export, it is inevitable to ensure the supply of quality raw materials and auxiliary raw materials. We expect the government's active support to establish an industry that produces clothes from natural fibers produced in Nepal, such as aloe, hemp, banana, etc., President Pandey said. We can create jobs.'  According to the

association, there are 100 ready-made garment industries in the country. About 10 billion readymade garments are exported from these industries annually. 35 thousand have got direct employment. Ready-made garments are the second largest item in exports to third countries. To make it stronger, a special initiative of the government is necessary," said President Pandey.  According to the

association, the ready-made garment industry, established since the 1980s, has contributed to the economy by earning foreign exchange and creating jobs through exports. In 2001/02 readymade garments were exported to the tune of US$ 400 million. At that time, 1,280 ready-made garment industries were operating.

About 10 lakhs were employed. But after the end of the US quota system in 2005, exports continued to decline. The union claims that the garment industry sector, which had an investment of 6.5 billion at that time, has collapsed. Chairman Pandey said that there is a gradual improvement now.

Industry, Commerce and Supply Minister Damodar Bhandari said that there is an opportunity for Nepal to increase its exports due to the tariffs imposed by the US on India. He said that this opportunity should be utilized by the government and the private sector together. He said that there is a possibility to export 70 to 80 billion rupees if the American tariff policy can be utilized. He also said that Nepal is preparing to form a textile council for the promotion of clothing, carpets and textile sectors.