NCC president urges government to develop furniture sector as strategic industry

KATHMANDU: Nepal Chamber of Commerce (NCC) President Kamlesh Kumar Agrawal on Saturday urged that the country’s furniture and furnishing sector be developed as a strategic industry. He said it can play a central role in industrial growth, job creation and wider economic activity.

Speaking as chief guest at the 11th annual general meeting and the 6th Convention of the Nepal Furniture and Furnishing Association, NCC President Agrawal said the sector should be seen as more than a maker of chairs, tables and sofas. He linked the industry directly to construction, tourism, hotels, housing, educational institutions and office management, and called for policies and investments to support expansion.

He highlighted the industry’s contribution to employment, noting that it provides direct and indirect jobs to thousands of Nepalis by adding value to local raw materials such as wood, bamboo, metal, cloth, foam and glass. He said rapid urbanisation, new housing, hotel expansion, office modernisation and changing lifestyles have created “immense” market potential.

However, he warned that the sector faces multiple challenges, including shortages of raw materials, rising production costs, high bank interest rates, limited financial access, a lack of skilled labour, competition from foreign products, low uptake of modern technology, and higher transportation and energy costs. He also pointed to unmanaged markets and weaknesses in branding.

“We must adopt policies that make domestic industries competitive, not weak, in the name of an open market,” Agrawal said. He identified three priorities for sustainable development: quality; design and innovation; and branding and market expansion. He added that global demand now focuses on design, durability, eco‑friendly products and customer experience, and urged the Nepali industry to adapt accordingly.

Agrawal urged the government to ensure primary use of domestic furniture in public institutions, and to provide easier access to long‑term loans and working capital at concessional rates. He called for collaboration between the government and the private sector to establish skill development centres for furniture design, interior technology and modern wood engineering, and recommended tax concessions on machinery imports, incentives for technology modernisation, and export promotion through international exhibitions and trade fairs.

Noting that the budget for fiscal year 2026/27 appeared to address many of the industry’s problems, Agrawal also stressed the need for a systematic wood supply policy that balances forest conservation with industrial raw material requirements. He said Nepal’s economic prosperity cannot rely solely on imports and remittances and urged a shift towards production, industry and entrepreneurship supported by stable policy and public‑private trust.