11 Importance of Industries in Nepal

Find here a post about 11 importance of industries in Nepal. Not only that we have posted here some facts and information about what is industry, pre-requisites of Industries, categories of industries, and importance of industries.

Importance of Industries in Nepal

Importance of Industries in NepalIt is widely accepted that Geography as a social discipline is the study of man’s activities in relation to physical environments. Here the central figure is Man; and as such its study is highly dynamic. In its study, major emphasis is stressed on the spatial distribution of human activities as influenced by physical factors such as landforms, climate, etc. The degree of influence exerted by them varies much on the basis of skill, attitude and technological progress achieved by human societies. Likewise, the style of changes to be brought about by a man on existing landscapes depends much on his skill and capabilities. This then explicitly reflects that Geography performs the role of exploring and explaining the nature of interdependence and interaction between man and environment. image source:

What Industry Is

It is the manufacturing of goods and finished products for commercial purpose. It refers to the people and activities involved in the production of things by using raw materials, skills, capital, management, and means. It can be cottage, small, medium and large scale industry. It is also called secondary activity.

Pre-requisites of Industries

The pre-requisites of industries are Land, labor, management, capital, raw materials, machine, markets, transportation, and communication.

Categories of Industries

In Nepal, the industry is categorized as follows:

1. Cottage Industry: An industry that has fixed assets of up to two lakhs rupees, and consumes energy less than 5 kilowatts.


2. Small Scale Industry: An industry that has fixed assets of up to 3 cores.

3. Medium Scale Industry: An industry that has fixed assets of 3 to 10 crores.

4. Large scale Industry: An industry that has fixed assets over 10 crores.


Industries Under Cottage Industries

  • Handloom, tailoring, press work
  • Woolen carpets, pashmina shawls, woolen garments, knitting work
  • Carpentry, wooden designs, artwork, bamboo items, cane-based art work and
    furniture, handmade papers
  • Gold, silver, copper and precious stone ornaments
  • Leather work from hides tanned at local level
  • Stone sculpture work, statues, pottery work, painting and art work
  • Handmade gift items of all kinds
  • Making of traditional agricultural tools, utensils etc

Salient Features of Cottage Industry or importance of cottage industries in Nepal

  • Use of local raw materials
  • Use of skilled, semi-skilled and unskilled manpower
  • Use of simple machinery consuming energy below 5 kilowatts
  • Requiring small space or area
    Simple design, processing, and design
  • Labour intensive production

Importance of Industries in Nepal

Nepal is the least developed country. From an economic standpoint, Nepal is virtually a developing country, in which agriculture is still the mainstay of the entire economic system of the country. About 81% of the total working force in the country are engaged in agriculture and it is operated basically on a subsistence level. Her natural resources, though not very fast, are not yet properly surveyed and exploited. Since a large proportion of its area is hilly and mountainous, her arable land is limited to merely 18%. From this, it is obvious that a substantial proportion of her land is not in the service of countrymen. In addition, owing to the same rough terrain, she suffers much from the extreme difficulty of transport which is by far the most crucial of all the problems affecting the economy of Nepal. Regionally, most of her economic activities are confined to the Tarai belt; while most of the northern hilly areas are lagging far behind. This then clearly shows that the national economy of Nepal from the spatial point of view looms highly unbalanced in nature.

Among the diverse causes of such an imbalance in the national and regional economy of Nepal, one is, I think, the great negligence of the geographic aspects of the country. Even in formulating and executing economic plans and programs, adequate attention was not given to the geographical conditions of the country. This was, perhaps, one of the major causes of limited progress achieved during early decades. It is only during recent years that the eyes of the economic planners of Nepal are widely open and they aptly felt the utter need of applying some geographic principles in their planning techniques. Consequently, the concept of regional development has now been introduced in Nepalese planning processes; and accordingly strenuous efforts are now being made to diffuse development projects and programs as regionally as possible.

Development of industries is vital for achieving rapid economic growth. The following points highlight the importance of industries:

  1. Leads rapid development
  2. Provides employment opportunities
  3. Uplifts living standard
  4. Makes the country self-dependent
  5. Promotes export and reduces imports
  6. Local resources and raw materials are utilized
  7. Encourages agricultural development
  8. Promotes skill development and diversification of investment
  9. Promotes economic activities, saving, investment and income
  10. Promote regional development
  11. Promotes urbanization

Writer: Ramhari Banjara

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