Due to Nepal’s proximity to India and China, two of the world’s most populated countries, it has easy access to both countries’ thriving economies. Import tariffs are extremely low, making Nepal an appealing investment destination for Indians as well. In several developed-country marketplaces, Nepal is also entitled to preferential treatment. Nepal’s natural and cultural features also present a significant opportunity for investment. The climate in the country is diverse, ranging from tropical to sub-arctic. In the south, the geography is mainly mountainous near sea level. Nepal produces a wide range of agricultural products, as well as medicinal plants and high-quality tea. Hydropower has a large potential, with around 43,000 MW being technologically possible.
The Nepalese government has made provisions for a monetary incentive of up to 5% for the export of certain products. Exports of fifteen distinct products are eligible for a 5% cash incentive based on the total exported value, according to the new regulation. Processed tea, coffee, handicraft and woodcraft, leather products, processed ginger, processed honey, handcrafted paper, and mineral water are among the 15 products eligible for a 5% cash reward.
Similarly, exporters of 11 products are eligible for a 3% monetary incentive. Readymade garments, carpet and woolen items, medications, and jewelry decorations are only a few examples. Some of the products exported from Nepal are:
In Nepal, large cardamom (Amomum subulatum) is a herbaceous perennial spice plant belonging to the Zingiberaceae family, and is simply known as “Alaichi.” On the international market, it is known as Black Gold or the Queen of Spices. Its culinary and therapeutic virtues have propelled it to global acclaim. Because it is so pricey, it is considered a luxury item that is only purchased by the upper-middle class and wealthy. It is primarily grown in Nepal’s sub-Himalayan range, at altitudes ranging from 600 to 2000 feet, with annual rainfall ranging from 1500 to 2500 mm and temperatures ranging from 8°C to 20°C.
For taste, cooking, and medicinal purposes, large cardamom is in high demand around the world. Its popularity is growing because of its distinct flavor, rich scent, and strong aromatic character. In aromatherapy, this oil is commonly utilized because it is considered to be one of the most potent essential oils. Large cardamom contains numerous therapeutic properties for human health, including gastrointestinal, cardiovascular, pulmonary, dental, and urinary health. It contains anti-carcinogenic, antiseptic, and antibacterial effects, as well as being high in antioxidants, vitamin C, and vital minerals such as potassium.
Ginger (Zingiber officinale) is a flowering plant that belongs to the Zingiberaceae family and is often known as ‘Aduwa’ or ‘Suntha’ in Nepal. Most of the world’s tropical and subtropical regions are home to this plant kind, including Nepal. The ginger plant has yellow blooms and slender green leaves. Ginger plants can reach 60 to 90 cm in height. The root of the plant, known as the rhizome, is used to grow ginger. Ginger is typically planted in Nepal during the monsoon season, between February and March. Shoots normally die out after a given amount of time on the plantation, and ginger is collected by digging out the rhizomes.
Aside from being a good source of vitamin C and vitamin B6, ginger is also a good source of calcium and salt. It’s utilized in cooking because of its powerful, spicy scent, which gives it a sweet taste. Ginger is grown in Nepal in two different varieties: Nasse and Bosse. Nassee (with fiber) is of industrial quality, which is why it’s used in pharmaceuticals and ginger powder. Bosse, on the other hand, is preferred fresh and is considered to be of high quality.
Nepal’s tea industry is thought to be the most prosperous. Tea plantations and production have been significantly expanding since the early 1990s, following economic liberalization and the implementation of privatization policies. Tea plantations began in Ilam and Soktim, and the Nepal government has supported them with a variety of initiatives, including the founding of the Nepal Tea Development Corporation (NTDC). The government of Nepal has even designated five districts as ‘Tea Zones’: Ilam, Jhapa, Panchthar, Dhankuta, and Terhathum. Tea has become a flourishing segment of the economy over the last two decades, producing significant domestic employment. Directly or indirectly, this industry employs more than 70,000 individuals, both low- and high-skilled, across the country.
Organic and highland tea is in high demand on the global market. Nepali tea has a large market potential because of its favorable climatic conditions, plentiful inexpensive labor, and expanding tea consumption trend. According to a recent poll on tea cultivation, over 64% of farmers were content with their jobs, indicating that tea cultivation had a better profit margin than other crops. In addition to increasing awareness and skills, certifying the tea as organic, and strengthening the tea processing system and storage system, Nepali tea output and demand in the global market would both increase.
Medicinal and Aromatic Plants
Because of Nepal’s tremendous biodiversity, medicinal and aromatic plants have a great deal of potential for commercialization. A total of 700 plant species have been documented to have therapeutic characteristics, with some of them being fragrant. For millennia, these herbs have been utilized in Nepal as traditional Ayurveda treatments. Around the world, different sections of Medicinal & Aromatic Plants (MAPs) have been used as medicine, food, fragrances, and cosmetics. Medicinal plant trading is a feature of people’s subsistence livelihoods, particularly in the high Himalayas.
Even though tropical and sub-tropical regions in Nepal have the highest concentration of MAPs, the high-value medicinal plants are located in alpine and sub-alpine regions, which offer a large market opportunity. Around 250,000 persons are estimated to be involved in the gathering, manufacture, and exchange of MAPs. Around 85 species of MAPs are traded on a global scale. Many other species, on the other hand, are traded through unofficial means. Around 112 distillation units for medicinal herbs are in operation across the country, most of them are situated in the Terai region. Both cultivated and wild medicinal herbs are distilled in these distilleries.
All Fabrics, Textile, Yarn, and Rope
Nepal’s textile and garment cloth sectors constitute the country’s manufacturing backbone. Textiles from Nepal contain a diverse range of items such as garments, carpets, purses, and blankets, all of which are manufactured from natural plant and animal components. Textiles made from plants include cotton, jute, allo, and hemp, whereas textiles made from animals include wool and silk. Nepal also manufactures synthetic materials such as polyester, acrylic, and polypropylene. Nepal has a long history of textile production dating back over a thousand years. People created a complicated weaving technique using many types of looms to create a wide range of crafts. The only spinning of fibers has shown to be suitable among the numerous processes involved in textile manufacture in Nepal. Fiber extraction, fabric weaving, and dyeing, processing, and finishing of textiles are all in the early stages. The primary challenge for hand-made Nepali textiles has been the mass production of cheaper textiles in other nations.
Leather is one of Nepal’s most valuable exports. It has a lot of potential for export. Both in terms of quality and pricing, Nepali leather is competitive. As a result, Nepali handcrafted leather products are well-known throughout the world. The majority of leather goods in Nepal are made from processed leather, which is mostly derived from buffalo hides and goat skins. Jackets, handbags, shoes, purses, wallets, belts, gloves, and camera bags are among the leather items that Nepal produces and exports. According to market demands, these products were created using both old and modern processes. Nepal’s leather sector ranks third in terms of manufactured goods exports. In Nepal, there are about 200 small and medium-scale leather-based industries, most of which are centered in the Terai area.
Nepal exports leather and leather products to over 20 nations worldwide. Italy, India, China, Canada, Japan, the United States, the United Kingdom, Israel, and France are the top export destinations for leather goods. Around 80% of the leather produced in the country is exported, with the remaining 20% being utilized to manufacture footwear for the home market. Nepal’s garment sector also imports a modest number of high-quality hides for shoe-making.
In Nepal, the footwear industry is a beautiful one. Nepal produces a variety of footwear, including sports, leather, sandals, and slippers. There is a high volume of manufacturing and export of rubber or plastic shoes, but the price is low; conversely, leather shoes have a low volume of manufacture, but they sell well. Leather footwear has a low level of production and an insignificant volume of export, whereas sports footwear has a large volume of production and a medium amount of price and export.
Approximately 1,500 businesses produce 30 million pairs of shoes each year, employing 60,000 people. After the government-owned Bansbari Shoes Factory was privatized in1992, this industry exploded. Around 30% of women work as employees in the footwear business. In Nepal, only 63 manufacturers account for more than 70% of total production. In terms of raw materials, 22 enterprises manufacture them in the country, while 58 others import them from overseas.
The finest inner wool of the mountain goat popularly known as Chyangra is used to make Chyangra Pashmina, an authentic and high-quality Nepalese product (Capra Hircus). Pashmina is derived from the Persian word “pashm,” which meaning “soft, light, and silky.” As a result, it is more opulent, warmer, softer, and long-lasting than other wools. Pashmina is known by a variety of names and attributes depending on where it comes from, such as Chyangra Pashmina (Nepal), Mongolian, Cashmere, and so on. The finest, softest, warmest, and lightest wool found in nature is Nepali Chyangra Pashmina, which is one of the world’s best quality fibers. It comes from goats that live in cold climates at elevations of 3000 meters and higher. The trademark “Chyangra Pashmina” has now been registered in 47 countries, including the United States, Canada, Japan, Australia, New Zealand, Singapore, Taiwan, Malaysia, Brazil, Russia, China, and all of Europe.
Authentic pashmina products are of extraordinary quality and cost a lot of money. However, because the products are created from the wool of Himalayan goats, the source of pashmina is in short supply. Most pashmina producers now import yarn from China, which is manufactured specifically from Mongolian wool. According to market needs, pashmina yarn is frequently blended with silk yarn to create items. It is occasionally blended with cotton, silk, and synthetic fibers, and the buyer should be informed of the product’s quality. The price of Pashmina products reflects their legitimacy; low-cost items may not be pashmina.
The knotted carpet is a unique Nepalese handcrafted product produced from fleece wool. Nepalese woolen carpets are known for their unique sheen and naturally shaded surface structure. The quality, texture, color combination, and durability of this product are all one-of-a-kind. Nepali carpets come in a variety of sizes, from 16-inch by 16-inch to 9-foot-by-12-foot and other extra-large sizes. These carpets are available in natural and synthetic colors and come in densities of 60, 80, 100, 120, and 150 knots per square inch. These carpets’ raw material, high-quality fleece wool, is sourced from Tibet, New Zealand, and the United Kingdom. Nepali carpet has a big market base in Europe and North America due to its distinctive features and practicality. In general, such carpets are utilized as flooring in homes, workplaces, hotels, and a variety of other settings, including public meetings and special events.
The craft of carpet weaving has a long history in Nepal. It is a long-standing practice in Nepal’s mountainous regions. However, with the influx of Tibetan refugees in the early 1960s, the production of an export-quality carpet began. Nepal began commercial carpet shipments in1962, with a sample cargo to Zurich, Switzerland. The majority of carpet manufacturing is now based in Kathmandu. Around 95 percent of manufacturers are headquartered in Kathmandu, with the other 5% dispersed across the Kathmandu valley. Carpets are currently produced and sold by around 200 producers and 200 exporters.
Nepali coffee is a specialty coffee with higher quality and lowers caffeine content, and it is organic by default. Nepali coffee has a distinct flavor and quality when compared to coffees cultivated in other nations since it is grown in the cold temperature of the highland regions without the use of inorganic fertilizers and pesticides. Nepali coffee is more expensive than Indian coffee because of its superior quality. Only Arabica coffee is grown in Nepal, and it is the most widely consumed coffee in the world. A total of 560 tons of coffee are produced each year in 47 regions. It is cultivated by more than 21,000 farmers across 2381 hectares of land.
In addition, 61,000 hectares of land in Nepal are thought to be ideal for coffee cultivation. Gulmi district produces the most coffee, followed by Lalitpur, Kavrepalanchok, Syangja, Palpa, Lamjung, Gorkha, and Nuwakot. Only a small percentage of the coffee produced in the districts of Gulmi and Lalitpur is certified as organic and marketed on the worldwide market. Nepali coffee’s trademark has indeed been registered in the European Union, as well as seven other countries, including Japan and Korea.
Handicrafts in Nepal, is a B2B wholesale shop, offering a wide variety of Nepali handicrafts products at an affordable price and ship worldwide.