In the 18th century, in the industrial sector, within a short time, due to the use of fewer goods and services by machines rather than humans, the transformation that occurred in the industrial field was called the Industrial Revolution. It had started from England.

Due to the Industrial Revolution, the invention of railways, electricity, telegrams, telephones, mechanical, cotton-weaving, and life-easing machines led to development. Because of this, instead of human and animal labor, the use of steam power began. The beginning of home and small industries gradually transformed into large factories. That Industrial Revolution gave rise to a new system in production, transportation, communication, and social structures. The Industrial Revolution began in England and spread across Europe. As the demand for workers increased due to industrialization, even unskilled people were able to operate machines with training. This gave rise to two types of laborers skilled and unskilled. Although production increased, problems of unemployment, poor living conditions of laborers, and child labor began to emerge. Home and small industries started to decline, and eventually, two classes formed in society, capitalist and laborer. With the expansion of capitalism, the birth of socialism and the end of feudalism occurred. Industrial capitalism was born.

Impacts of the Industrial Revolution

Even though the Industrial Revolution of the 18th century was geographically limited, it began to impact other countries as well. Many industries began operating such as: cloth weaving, paper manufacturing, food industry, hotel business, cement, brick industries, soap factories, matchstick and cigarette factories, shoe and garment industries, metal, plastic, cement, furniture industries, radio, TV, computer, transformer, electric wires, solar panels, etc. Due to these, daily consumable goods and essential items began to be produced domestically. The country also started exporting these items. As a result, self-reliance increased and the trade deficit decreased.

By the 19th century, with the development of electricity-based mass production, industries producing large quantities of goods began to appear. In the case of Nepal too, after the political change of 2007 B.S. (1951 A.D.), the practice of granting licenses for private industries began. After 2046 B.S. (1990 A.D.), with the establishment of democracy and the introduction of liberal economic policies, the pace of industrialization in Nepal became faster. The influence of the Industrial Revolution spread further.

As a result of the Industrial Revolution, the entire world has moved forward: large-scale production, mechanization, specialization, management, market expansion, and overall transformation have occurred. Nepal is also in the process of going through these influences.

The Road Ahead

Currently, the world is heading toward the Fourth Industrial Revolution with the development of internet and cyber systems. The use of robotics, artificial intelligence, and machines is seen affecting production and distribution. Because of this, Nepal must also be careful. It is necessary to adopt clear and principled policies to create a favorable environment for industrial development.

Even though Nepal has the capacity to produce, it has not been able to produce industrial raw materials and uses expensive raw materials from other countries. Even basic goods are imported in large quantities. Industrial goods occupy a significant portion of Nepal’s imports. Therefore, what should be done now? Local industrial structures must be promoted. For self-reliance, the government’s policy should focus on management. By creating employment opportunities in the industrial sector, and by encouraging industries that use domestic labor and capital, Nepal can reduce dependence on foreign countries. Policies to make production and distribution effective must be put in place. The government needs long-term and visionary policies for the mobilization of capital and product management. To develop Nepal into an industrial country, the state must pay special attention to the industrial sector.

Brief Introduction of Patan Industrial Area

With cooperation between the Government of Nepal and the Government of India, on Falgun 12, 2020 B.S., the foundation of Patan Industrial Area was laid by King Mahendra and Indian President Dr. Rajendra Prasad. Due to the growing urbanization of Kathmandu, the southern part of the valley, which had potential for industrial development, was selected for the establishment of this industrial area. Thousands of people have been employed here. The government has been promoting industries and private sectors to operate in this area. The main feature of this area is small and medium industries. It is also a hub for Nepali arts and crafts. The construction of woodcrafts and sculptures made from local wood and stones represents Nepali culture and is exported abroad. A national-level committee has been formed to conduct industrial exhibitions here, marking the first step toward industrialization in Nepal. In this area, the production of traditional Nepali art and culture-based products continues. Products include woodcrafts, traditional printing, pashmina, garments, handicrafts, and handmade papers. This area continues to produce modern and traditional industrial items such as furniture, transformers, electric wires, solar panels, etc.