Indian garment giants eye Nepal as US tariffs bite
Summary
Indian and Bangladeshi garment companies are exploring Nepal as an investment and production hub due to lower US tariffs on Nepali goods compared to steep tariffs on their own exports. This shift could boost Nepal's garment exports significantly.
Key Points
- Indian and Bangladeshi garment investors are considering Nepal due to lower US tariffs on Nepalese exports compared to their countries' high tariffs.
- US tariffs of up to 50% on Indian garment exports have caused concern and potential order cancellations in India.
- Major international brands like GAP, Puma, Nike, and Zara are interested in moving production parts to Nepal.
- Nepal's garment industry, once a major export earner, has declined but could get a boost if these investments materialize.
