Thread Imports Dip 0.6%: Implications for Nepal’s Textile & Garment Industry

Nepal’s imports of thread slightly declined by 0.6% in the first month of 2025/26, totaling Rs. 1.88 billion compared to Rs. 1.89 billion in the same period last year. With thread accounting for 1.3% of total imports, the small contraction signals a subtle but noteworthy shift in Nepal’s textile and garment sector dynamics.

Experts say the dip could be linked to slower garment production and subdued demand in both domestic and export markets. The rise of imported readymade garments and second-hand clothing has put pressure on local garment factories, reducing the demand for raw materials like thread. At the same time, economic slowdown and weaker consumer purchasing power have limited growth in the domestic apparel market.

Another factor is that many Nepali garment exporters continue to face stiff competition in international markets, particularly against large-scale producers from Bangladesh, India, and Vietnam. With limited scale, higher production costs, and outdated machinery, Nepal’s garment industry has struggled to expand its global share, which indirectly affects thread demand.

However, analysts also see opportunity in this trend. The growth of local fashion brands, tailoring businesses, and boutique industries is gradually creating niche demand for specialized and high-quality thread. If supported by proper policies, training, and access to modern technology, Nepal’s textile sector could diversify beyond traditional exports and build stronger “Made in Nepal” apparel identity.