Las Exportaciones Textiles y de Prendas de Vestir de Nepal

This research paper by South Asia Watch on Trade, Economics, and Environment (SAWTEE) analyzes the challenges and drivers of competitiveness in Nepal's textile and clothing sector. It examines the impact of Nepal's impending graduation from Least Developed Country (LDC) status, the limitations of current industrial policies, and the necessity of shifting from direct export subsidies to structural support and better institutional coordination to maintain global market presence.

• Nepal's overall export performance has declined significantly over 25 years, with goods and services exports falling from 26.3% of GDP in 1997 to 6.8% in 2022. Merchandise exports specifically dropped from 13.1% of GDP in 1999 to 2.9% in 2022, leaving worker remittances (22.7% of GDP in 2022) as the primary source of foreign exchange.
• The textile and clothing sector remains a vital part of Nepal's merchandise exports, accounting for 31.5% in 2022. The industry has shifted from mass production to niche markets, relying on unique craftsmanship, hand-made production, and LDC-based preferential market access, such as duty-free access to European markets.
• Nepal's hand-knotted wool carpets represent 12% of global exports in that category. Despite a decline from a 1994 export value of USD 159 million to USD 84 million in 2022, the sector survives through high customization, brand value, and the ability of small production units to accept bespoke orders.
• Structural competitiveness is hindered by high logistics costs and labor shortages. Exporters estimate their unit costs are at least 25% higher than competitors in Bangladesh (for clothing) and India (for carpets). This is attributed to a reliance on expensive air transport, lack of direct access to western Indian ports, and a workforce that increasingly prefers emigration over low-paying local factory work.
• Graduation from LDC status is expected to negatively impact the clothing sector due to increased tariffs and stricter rules of origin. A SAWTEE study suggests an average tariff increase of 6.7%, while a World Trade Organization study estimates a 13.3% drop in current exports.
• Current government interventions, such as Special Economic Zones (SEZs) and export subsidies, are deemed insufficient or ineffective. SEZs lack adequate infrastructure and are too far from Kathmandu for the air-dependent clothing sector. Furthermore, the government's recent retroactive suppression of export subsidies has damaged private sector trust.
• The authors argue for a policy shift from ad-valorem subsidies toward structural support, including market information, trade fair participation, and the creation of sector development institutes. They highlight a lack of inter-ministerial coordination in Nepal, contrasting it with Ethiopia's national export coordination council, which helped drive merchandise export growth of 22% annually between 2006 and 2012.

APA

Kharel, P., Dahal, K., & Singh, D. (n.d.). Las Exportaciones Textiles y de Prendas de Vestir de Nepal. International Institute for Sustainable Development. https://www.iisd.org/es/articles/policy-analysis/nepal-textiles-clothing-exports

Chicago

Kharel, Paras, Kshitiz Dahal, and Dikshya Singh. Las Exportaciones Textiles y de Prendas de Vestir de Nepal. International Institute for Sustainable Development, n.d. https://www.iisd.org/es/articles/policy-analysis/nepal-textiles-clothing-exports.

Wikipedia

{{cite report |last1=Kharel |first1=Paras |last2=Dahal |first2=Kshitiz |last3=Singh |first3=Dikshya |title=Las Exportaciones Textiles y de Prendas de Vestir de Nepal |publisher=International Institute for Sustainable Development |url=https://www.iisd.org/es/articles/policy-analysis/nepal-textiles-clothing-exports |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kharelndlas, author = {Kharel, Paras and Dahal, Kshitiz and Singh, Dikshya}, title = {{Las Exportaciones Textiles y de Prendas de Vestir de Nepal}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/es/articles/policy-analysis/nepal-textiles-clothing-exports}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }