One hundred and thirty-seven cottage and small industries have closed down in Kailali district due to the shortage of raw materials. Several of these industries have shut down because they could not manage the operation costs, while others have shut down because their productions could not compete with market prices.

According to the Cottage and Small Industries Office, several of the industries closed after their proprietors left the country for foreign employment. However, the registration of women-owned enterprises has notably increased in the district in recent years. This is due to the provision of concessions on the registration fees for women-owned industries.

So far, 15,434 industries have been registered in Kailali, and the registration of 137 of them has been annulled. Among the registered industries, 3,194 are production-based, 6488 are agriculture-based, two are construction, 65 are tourism-related, 12 are information technology-related, and 5,673 are service-oriented industries. These industries have an investment of Rs 25 billion, it is stated.

The Sudurpaschim provincial government has allocated Rs 15 million for implementing the ‘One Electoral Constituency, One Industry’ program in the current fiscal year. The Office stated that 9,120 women and 69,611 men are employed in the registered industries.

The office collected revenues of Rs 5 million,216 thousand in the last fiscal year 2022–23 and Rs 10 million,500 thousand as of March 13, in the eight months of the current fiscal year 2023–24.