To enhance competitiveness in production of readymade garments, the government of India is preparing to develop a Garment Processing Zone (GPZ) within Simara Special Economic Zone (SEZ), in Bara district.

The concept of the GPZ came into light after the United States extended zero tariff preference for 66 products, including apparels, into its market through ‘Trade Facilitation and Trade Enforcement Act’ to Nepal. The world’s largest economy is all set to provide preference for Nepali products through a separate act to support the country’s aspiration to graduate to the league of developing nations by 2022 through sustainable and robust economic growth.

Through the act, the United States which is expected to come into effect after a month, has declared it would provide duty-free access to 66 Nepali products and support the country in trade capacity enhancement. Nepali apparel entrepreneurs are excited with the recent development because the United States was a major export market for Nepali apparels until Multi Fiber Agreement (MFA) was phased out on January 1, 2005. The country had exported readymade garments worth Rs 12.5 billion in fiscal 2001-02. Garment industry, which is on the verge of collapse after MFA was phased out, is expected to revive once again.

GPZ in Simara SEZ will be completed within three years as per SEZ Development Committee, which will house 69 blocks for garment industries and will be equipped with all required facilities - power, road connectivity, water supply and sanitation, among others.