The value of Nepal’s readymade garments exports have risen by 17.8 per cent year-on-year, during the first two months of Nepali financial year that began on July 16, 2013. Depreciation of the Nepali currency vis-à-vis the US dollar was the major factor contributing factor that increased exports. On July 16, 2013, the exchange rate for 1 US dollar was Np Rs 95.01, which gradually rose to Rs 101.47 on September 15, 2013.

Nepal exported garments worth Np Rs 786.2 million ($8 million) in July to September, 2013 period as compared to exports worth Np Rs 667.4 million ($6.8 million) made during the corresponding period of last fiscal, as per the latest data from the Nepal Rastra Bank. During the two-month period, Nepal’s garment exports to India increased to Np Rs 55.1 million ($0.55 million), as against exports valued at Np Rs 35.2 million ($0.36 million) made during the same period last year.

For Nepal, garments were the second-largest export item, after hand knitted carpets, during 1990-2000 and fetched Np Rs 13.12 billion ($0.13 billion) at its peak. However, apparel exports declined to Np Rs 11.89 billion ($0.12 billion) in 2003-04, and then to around Np Rs 4 billion ($0.04) in 2012-13.

The inclusion of garments in the revised GSP would help Nepali clothing to qualify for preferential access to the US market. In addition, the Ministry of Commerce and Supplies (MoCS) is also considering the inclusion of garments in the Nepal Trade Integration Strategy 2010 priority product list, in order to boost the sector.