Carpet industry has got good prospect in the foreign trade. The carpet industry has faced many problems during the time when Europeans and American customer discovered that some carpet products were using child labour. They stopped buying Nepalese carpets and as a result, even the producers who were not using child labour were unable to sell their products. This problem has been corrected somewhat when the independent agency like Nepal Rug Mark foundation intervened and started providing quality to carpet manufacturer without using child labour which has helped the industry to improve its business in foreign market to certain extent.

Nepal is one of the developing countries. It has faced many problems. It has to bear huge loss in foreign trade as import is higher than export. Therefore, it has to make strong effort in every financial aspect. It has to promote its business not only at national level but also at international level as well. After revolution in the industrial sector in European countries, the industrial development has taken a fastest pace in other countries also. In this competitive world, the huge loss in international trade, it has to promote its export business in foreign market. About 2800000 sq. meter carpets are being exported each year from Nepal. Nepalese carpets are popular among European countries like Germany, America, and U.K. During 1985/86 carpets amounted to Rs.61077800 has been exported to Germany and carpets amounted to Rs.1502800 has been exported to America from Nepal. The export of carpet has been increased within last 13yr. period. Therefore, carpet industry has found to be very effective business in Nepalese context. Carpet industry is such an industry which can contribute a lot in developing countries like Nepal. It has given employment to uneducated and unemployed person. 

Carpets in Nepal are not produced by using modern waving technology but by using the traditional equipments. The carpets in Nepal are produced by the traditional arts guided by culture, religion, tradition and the environment of the country. The art of waving is an old tradition in Nepal, especially in the mountainous region of the country. Raadii, Pakhii, Bakkhu, Dhari are some of the examples of the traditional carpets. The traditional technology is expensive than the modern technologies, so the Nepali carpets cannot compete with the foreign carpets in term of the rate of the carpets. But the Nepali carpets are popular among the foreign countries because of the quality it have.