Garment Industry In Nepal Essay
Chapter One: Introduction
1.1. Background of the Research
Readymade Garments
Ready Made Garments (RMGs) are mass-delivered finished material results of the apparel business. They are not customized according to measurements, instead generalized upon anthropometric studies. They are produced using a wide range of fabrics and yarns. Their attributes rely upon the fibers utilized as a part of their production. Ready-made garments are of two types i.e. Outer clothing & Underclothing. (ARLANDA)
Nepalese Readymade Garments
Garment Industry in Nepal laid its foundation during the early 1980s. During the early stage the production of garments for export was confined to ethnic garments and little souvenir items for tourists. In 1974, garment exports from Nepal as well as other least developed countries were granted quota free access under the provision of Multi Fiber Agreement (MFA) by
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Having learnt from the Indians coming to Nepal and benefitting from the quota free access, the industry stood up as the biggest export-oriented manufacturing industry of the country within 10 years. In 1994/95, though the industry comprised less than 1 percent share in the global RMG trade, its exports made up 29 percent of the country’s total exports and employed more than 50,000 workers which accounted for 12 percent of employment in the manufacturing sector. (SAWTEE and AAN, 2007)
Due to the low capital investment required and since the RMG industry is highly labor intensive, the number of manufacturing establishments rose significantly for RMG exports. The entrepreneurial skills achieved from Indian businesses prompt Nepalese to come forward to respond to the global market. Enhancing their capacity, they were able to supply clothing to the renowned US retailers on 'cut, manufacture, trade (CMT) '
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