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India proves to be alternative for RMG exports
Oct '10
The readymade garment sector of Nepal has found an alternative market for its products in India. Nepal's RMG manufacturers have procured an order of Rs 250 million from Indian traders in the past few months. This is expected to give a boost to the country's export of readymade garments particularly when its exports have been falling in the global market.

The industry has been motivated by the increasing demands for apparels from India. The sector has been acquiring more and more demands from new as well as the existing Indian customers. It has also been regularly receiving a number of inquiries from the Indian customers.

Around six big and thirty-six small apparel manufacturing units are functioning, at present, in Nepal. Majority of the orders for readymade garments are for the festive occasion of Diwali and the winter season.

Nepal enjoys a competitive advantage over the other RMG exporters as a result of its location adjacent to India, low raw material and labor costs. The country has been experiencing a sharp decline in its RMG exports, particularly to Europe and the US. However, the increasing demand for apparels from India has brought some hope for the garment manufacturers and exporters of Nepal.

The export of RMG to India is expected to surpass the Rs 1 billion mark in 2010, if its demands continue to increase at the same rate. The country has exported readymade garments worth Rs 600 million to India in 2009. It has been exporting shirts, pants, T-shits, suits and trousers to India.

Fibre2fashion News Desk-India

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