Lumbini’s industries struggle to survive
Summary
Small and cottage industries in Lumbini Province are struggling as unstable policies, tight credit and weak consumer demand drive a sharp drop in new registrations. Business leaders say predictable rules, affordable loans and stronger domestic demand are needed to revive the sector.
Key Points
- New registrations of small and cottage industries in Lumbini Province have fallen sharply over recent years, reflecting growing uncertainty in the industrial sector.
- Business leaders say lack of capital, weak market demand and policy instability are discouraging investment and hurting production.
- Many existing industries are renewing registrations but are operating below capacity, with some keeping registration active only to avoid legal or financial complications.
- Industrialists are calling for a stable long-term policy environment, easier access to credit and stronger job creation to rebuild demand.
