Cottage indrustries in Nepal.

As early as 1952, the Nepalese government recognized that industrialization would have to take into account the severe limitations imposed by the country's geography. Cottage industries—the local production of traditional handicrafts—were seen as a way to engage the underemployed rural population and contribute towards export earnings. In Nepal, these industries have included pottery, handmade paper and products, woodwork, metal work, weaving, embroidery, and basket making, and draw on artistic traditions dating back centuries. However, even with the creation of Cottage Industries Training Centers across the country, many of these crafts have been in decline. Still, they contribute about 60 percent of industrial production, with the garment and carpet industries showing rapid growth since the 1980s and earning 84.3 percent of export earnings from countries other than India.