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Industrial textile goods register a decline in growth rate

05
Apr '08
Half yearly industrial production declined for the first time in many years and the situation will worsen when the impact of tarai unrest comes to the forefront.

The export oriented industrial bases are in a turbulent situation endangering thousands of jobs. The overall production index dropped to 99.76 in the first half of the current fiscal year as compared to 102.05 recorded in the same period last year.

Production of readymade garments (RMG), woolen carpets and pashmina products declined by 10 percent in 2007.

RMG alone saw a drop of 14 percent in its output, while woolen carpets that engages some four lakh workers also slid by 10 percent.

Entrepreneurs blame eroding competitiveness in international market and unfavorable industrial environment as the major reasons behind this declining trend.

However, Garment Association of Nepal (GAN) believes that political instability, insufficient supply of raw material and shortage of power supply have played a critical role in increasing the cost of production and thereby impairing the country's reputation as a dependable supplier.


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