“We are encouraged by the soaring demands for Nepali garments from India. Compared to last year, we are getting more demands from new and existing buyers from the southern neighbor. We are receiving inquiries from Indian buyers on regular basis,” Uday Raj Pandey, president of Garment Association Nepal (GAN), told Republica.[break]
Pandey further added that around half a dozen big and three dozen small garment industries are currently in operation. He said most of the orders are for the Diwali festival and the winter season.
“Because of Nepal´s geographical proximity, low labor cost and cheap raw materials, we have competitive advantage over other suppliers,” Pandey added.
The rising demands for Nepali apparels have brought cheers to Nepali garments producers and exporters, who have been witnessing sharp fall in the exports to overseas markets, mainly in Europe and the US.
“If the demands continued to rise in the same pace, the export of RMG to India will cross the Rs 1 billion mark this year,” Pandey added.
Nepal had exported RMG worth Rs 600 million to India last year. Nepal mostly exports shirts, T-shirts, suits, trousers and pants to India.
Prashant Pokharel, the immediate past president of GAN, also said Nepali garment industries are busy producing RMG to export to India.
“Exports of RMG from Nepal to India is growing as production cost in India and Bagladesh - one of the largest suppliers of garment to India - is growing due to rising labor cost,” said Pokharel, adding that the cost of raw materials is lower in Nepal compared to India because of high custom duty imposed by the government there.
Big Indian retail chains like Liverpool, Peter England, Shopper Stop and Big Bazaar are the major firms placing orders for Nepali RMG.
To capitalize the expanding market in India, Nepali garment entrepreneurs are preparing to create industrial atmosphere in the country to ensure smooth movement of products.
“We will hold talks with labor unions to reopen garment industries, which had closed shutters due to labor disputes, after the Tihar festival. Hopefully we will get the new government by then,” Pandey informed.
He further informed that GAN would give equal priority to emerging markets in India and traditional overseas markets - US and European countries.
Nepal had exported garment products worth Rs 3 billion to different European countries and Rs 1 billion in US in fiscal year 2009/10. The country had exported RMG export worth Rs 4.5 billion in the period.
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