Kiran Shoes Manufacturers Pvt. Ltd., the producer of the renowned Goldstar footwear brand, has resumed exports to India after a gap of five months. The company received the necessary quality certification from the Bureau of Indian Standards (BIS) a few weeks ago, allowing the resumption of exports.
Executive Director of Kiran Shoes Manufacturers, Vidushi Rana, stated that the company restarted exporting footwear and slippers to India two weeks ago. She added that 30-40% of the company's total production is exported to the Indian market.
Goldstar shoes, a brand with over four decades of history, has been exported to India for the past 30 years. However, export volumes have declined in recent years. To address this, the company has proposed establishing a factory within the Special Economic Zone (SEZ) in Bhairahawa.
Kiran Shoes has submitted an application to the Special Economic Zones Authority of Nepal to open a factory in Bhairahawa SEZ. However, Rana mentioned that the company is not yet ready to make immediate investments there. The decision to apply for SEZ entry followed the amendment to Section 7 of the Special Economic Zone Act, 2016, which allows existing industries to operate within SEZs.
The company proposed an investment of Rs 540 million for the SEZ factory, aiming to produce 9.6 million pairs of shoes and slippers annually. Despite initially planning to start operations within six months, Rana explained that the recurring need to renew the BIS certification annually has caused hesitation in moving forward.
According to the Department of Customs, Nepal exported 1,499,154 pairs of shoes and slippers worth Rs 523.2 million to India as of mid-December 2024 (in FY 2024/25).
Exports, including cement, plywood, galvanized sheets, and shoes, have been delayed due to India's prolonged process for renewing quality certifications. During the Nepal-India Commerce Secretary-level meeting held on Saturday, Nepal raised concerns about the lack of mutual recognition between Nepal Standard (NS) and BIS certifications.
Baburam Adhikari, joint secretary and spokesperson for the Ministry of Industry, Commerce, and Supplies, stated that an agreement was reached during the secretary-level meeting to harmonize NS and BIS standards. "It was agreed to work on prerequisites to make these quality certificates identical," he said.
Adhikari highlighted that the harmonization process would involve aligning standards, recognizing secondary testing labs, and mutually accepting certifications issued by these labs. He emphasized that if mutual recognition of NS and BIS certificates is achieved, exports from Nepal to India could proceed directly based on certifications issued by Nepal’s Department of Standards and Metrology.
Rana expressed optimism about the potential for increased investment if mutual recognition is realized. "If India recognizes NS and Nepal recognizes BIS certificates, we could confidently establish a factory in the SEZ. Our factory design and investment plans are ready," she said.
