Textile Exports Increase 6% While Readymade Garments Fall 1.1%

Published on September 27, 2025

Nepal’s textile and apparel industry showed mixed performance in FY 2025/26. On one hand, textile exports rose by 6 percent, reaching Rs. 203.4 million in one month, up from Rs. 191.9 million last year. This growth signals a modest revival in the fabric and yarn segment, supported by regional demand and small-scale industrial improvements.

However, readymade garment exports declined by 1.1 percent, falling to Rs. 519.3 million, compared to Rs. 525.2 million last year. Once a backbone of Nepal’s industrial exports, garments continue to struggle due to stiff competition from Bangladesh, Vietnam, and India, as well as Nepal’s high production costs and outdated manufacturing technology.

This contrasting trend highlights Nepal’s gradual shift within the textile sector: while basic textiles and yarn (such as polyester thread, +22.5%) are gaining momentum, value-added garment exports are losing global competitiveness. Without modernization, branding, and trade facilitation, garments may continue to lag despite the broader growth in textile-related exports.

Loan Restructuring for Gen Z Movement-Affected Businesses

The NRB has announced targeted loan restructuring and rescheduling measures for businesses and borrowers directly impacted by the Gen Z Movement and trade disruptions. Relief measures include restructuring by Poush 2082, concessional interest rates (base +0.5%), higher LTV for vehicles, subsidized salary loans, and export-linked incentives. These initiatives aim to revive businesses, protect jobs, and stabilize Nepal’s economy.