Nepal Movie Industry has been operating for more than fifty years but these fifty years were not very smooth. Below are provided some of the major problems of Nepal film Industry:

From the beginning, Nepalese movie industry has been facing serious competition from Indian movie industry. In comparison with Bollywood in terms of quality, quantity, technical equipments and know-how's, Nepalese movie industry is Goliath. Every time it is fighting against a DAVID named “BOLLYWOOD”. The outcome is, Nepalese moviemakers ending up imitating Bollywood movies. According to Uddhab Poudel famous Nepali film producer and chairman of Nepal Film Development Company (NFDC) and Gopikrishna Movies Pvt. Ltd. - "Nepali movie market demands 150 movies per year. Five years earlier, the condition of the movie industry was quite well. It produced 55 movies per year. Now the number has taken a nosedive between 12 and 15. There were 450 cinema halls out of which 200 are operating at present. The poor economic condition of the country is the major factor behind this.

The most successful movie of Nepal was Darpan Chaya. Released in 1999, this movie made a collection 20 million rupees. Some filmmakers think that in order to give Nepali movies a unique outlook, they should focus on the making of the typical Nepali movie. Other moviemakers argue that in order make a movie that translates Nepal’s culture and tradition on the screen; a good story is the most necessary thing.

In the past, to record songs, a singer had to go to India. Now many music studios have sprung up in Nepal. Now these studios are of high quality. In the earlier days, Nepali film makers had to hire cameraman, dance director, make-up man from India. Now this trend has changed. Editing, dubbing, mixing and other works were done in India. Now, the newly developed Nepal Film Development Company Ltd. (NFDC) has all the technical facilities.

It is true that the scenario has changed a lot in the film industry of Nepal but there are many things need to be done. The major challenge in filmmaking is that it is a creative process and takes a lot of time to rich to the point of maturity. In order to reach that point there is no alternative to skill, hard work and dedication. These days Nepal has many well-trained actors, and filmmakers. So the first thing for survival is to build up a pool of skilled actors, directors and producers. Second, moviemakers should always try to experience with new ideas and concepts. It would help them to keep the attention of the audience. From now on, Nepalese moviemakers have to try to think out of the box. The Nepali film industry has run into hard times the last few years. The last decade has, however, seen an increase of interest amongst individuals to produce independent films and documentaries have gained immense popularity too. Events such as South Asian Film Festival has played a key role in supporting this phenomenon not just in Nepal but in the entire South Asian region as well.