Nepal is seeking to revive its readymade garment and textile base by removing administrative bottlenecks and planning a dedicated Textile Council.
Exporters could benefit if laboratory-testing hurdles that have hindered US-bound garments are resolved.
The government is also assessing Hetauda Textile Industry’s reopening to serve security forces and later public and civilian markets.
These measures form part of a broader strategy to reduce dependence on imports while strengthening Nepal’s export base.
Industry representatives have long argued that delays in government approvals, limited institutional coordination and barriers to accessing international markets have weakened the competitiveness of Nepali manufacturers.
Meanwhile, efforts were reportedly underway to reopen Hetauda Textile Industry, one of Nepal’s earliest state-owned industrial ventures. Established in 1975 with Chinese assistance, the factory began commercial production in 1978 before shutting down in 2000 after years of mounting losses and operational difficulties.
As per media reports, the government had included the factory’s revival in its 100-day roadmap and had assigned the Nepali Army to conduct a feasibility study, inspect existing machinery, and oversee preliminary preparations. Initial funding has reportedly already been released for cleaning the premises, assessing equipment, and conducting trial production using existing machines before decisions are made on larger investments.
If revived, the factory is expected to produce uniforms for the Nepali Army, Armed Police Force and Nepal Police, with plans to eventually expand production to meet the needs of other public institutions and civilian markets.
The long-term vision also reportedly includes reviving the Butwal Yarn Factory, promoting domestic cotton cultivation, and building an integrated textile value chain.
The Garment Association Nepal has welcomed the government’s renewed commitment but stressed that long-term success will depend on private sector participation. Industry leaders argue that modern technology, domestic production of raw materials such as cotton and animal fibres, and a guaranteed market for locally produced textiles will be essential to making the factory commercially viable.
The Hetauda factory’s earlier decline serves as a cautionary tale. Political interference, outdated machinery, rising production costs, weak management, and competition from cheaper imports, it is alleged, steadily undermined its operations. While successive governments announced revival plans, none progressed beyond the proposal stage.
The latest effort signals a more comprehensive approach. By combining institutional reforms with industrial revival and export-focused policies, Nepal hopes not only to restore a lost manufacturing base but also to rebuild confidence in a sector that once played a vital role in the country’s economy.
However, its long-term impact will depend on how effectively these plans are translated into sustained action, feel the stakeholders concerned.
Fibre2Fashion News Desk (DR)
