Readymade Garments Exports Up 2.5% After Last Year’s Decline

Nepal’s readymade garments exports grew by 2.5% in FY 2025/26, reaching Rs. 519.4 million, up from Rs. 506.0 million last year. This marks a modest but welcome recovery after the sector faced contraction in 2024/25, driven by reduced demand and shifting global trade dynamics.

The improvement is credited to rising regional demand, especially from India and niche overseas buyers who value Nepal’s smaller but customizable production lines. Unlike mass-produced garments from Bangladesh or Vietnam, Nepal’s strength lies in flexible production, niche designs, and quality finishing, which are increasingly appealing to boutique markets.

However, challenges remain. The sector is still vulnerable to high production costs, lack of modern technology, and labor inefficiencies. Experts argue that sustained growth will require policy incentives, better trade facilitation, and investment in modern garment manufacturing to compete in global markets.