Nepal’s carpet exports to the United States crossed Rs 3 billion in the first six months of the current fiscal year, confirming strong demand for Nepali handmade carpets in the world’s largest consumer market. Data from the Customs Department shows total carpet exports reached Rs 5.69 billion, with Rs 3.11 billion shipped to the U.S., making it Nepal’s largest single export destination for carpets.
Carpet Industry Emerges as Key Export Pillar
The carpet sector—one of the few export industries based largely on domestic production—is once again emerging as a bright spot in Nepal’s import-dependent economy. Business leaders attribute the resurgence to handcrafted quality, eco-friendly production methods, and high design value, which have strengthened Nepal’s reputation among U.S. and international buyers.
In addition to the U.S., Nepali carpets are exported to more than 50 countries, including Germany, Italy, France, the U.K., Japan, Turkey, Canada, Australia, China, and several Middle Eastern markets. Major production centers are located in Kathmandu, Sarlahi, Makwanpur, Dhading, and Sindhupalchok, collectively employing around 200,000 people, with women forming a significant share of the workforce.
After losing its position as Nepal’s top export item in previous years, the carpet industry is showing clear signs of recovery. Exports rose from Rs 6.15 billion in FY 2076/77 to Rs 12.25 billion in FY 2079/80, reaching approximately Rs 13 billion in FY 2080/81. Today, carpets rank as Nepal’s second-largest export, delivering up to 80% value addition, far higher than many commodity-based exports.
Read more: Nepal’s Woolen Carpet Exports Plunge Amid Shifting Market Trends
However, challenges remain. Industry representatives cite labor shortages, limited adoption of modern technology, weak global marketing, and reliance on imported raw materials—mainly from China, New Zealand, and India—as key constraints. While only about 200 carpet factories are officially registered, an estimated 800 units operate nationwide, many on a small or informal scale.
Despite a 5% export subsidy, delays in payments and inconsistent policy implementation have reduced private sector confidence. Stakeholders argue that with stronger government–industry coordination, investment in raw material self-reliance in high-altitude regions, and better international promotion, the carpet sector could become a major driver of sustainable growth, rural employment, and export diversification for Nepal.
Globally recognised for their handcrafted, eco-friendly, and high-quality character, Nepali carpets are once again positioning the country as a niche but competitive player in the international flooring and home décor market.
