An Industrial Board called Udyog Parishad was established in 1992 B.S. by the then Prime Minister of Nepal Juddha Shamsher Jung Bahadur Rana with a view to promoting industrial activities and creating a favourable environment for trade and commerce in Nepal. The same year was marked with the promulgation of Company Law and an office named Nepali Cloth and Domestic Enterprise Publicity came into existence. It was, perhaps, the first government agency created for industrial development in Nepal. During around 8 years of its existence, many industrial concern were started through the efforts of the Udyog Parishad.
The Ministry of Industry and Commerce that was in existence since long was separated in 2038 B.S. The jurisdiction of the then Ministry of Commerce was expanded in 2040 B.S. and it was also allocated with the responsibility of supply sector. Again, in the same year, a separate Ministry of Supplies was created. In this way, three ministries i.e. Ministry of Industry, Ministry of Commerce and Ministry of Supplies came into existence as different ministries.
Prior to 2057 B.S., Ministry of Industry, Ministry of Commerce and Ministry of Supplies were functioning separately. It was in Baishakh 2057 that the related ministries - Industry, Commerce and Supplies - were merged by the Government of Nepal. Later in Bhadra 2065 B.S., two ministries, Ministry of Industry and Ministry of Commerce and Supplies, were formed by the GoN out of the Ministry of Industry, Commerce and Supplies. Again, according to the decision of the Government of Nepal (Council of Ministers) on 9th Poush 2072, the Ministry of Commerce and Supplies got split into two separate entities to look after trade and supplies related businesses exclusively.
After the promulgation of the Constitution of Nepal in 2072 B.S., and a series of elections in 2074 B.S., the elected government under the leadership of Rt. Hon'ble Prime Minister K.P. Sharma Oli made a decision on 11th Falgun 2074 B.S. to integrate the three ministries into a single Ministry of Industry, Commerce and Supplies. The ministry has been entrusted to formulate, implement and monitor policy, plan and programmes relating to industry, commerce and supplies and to promote country's international trade, industrial development and investment as well as supply of food, consumable goods and other essential items thereby protecting consumer rights. The role of the ministry has been considered crucial in the overall development of the nation. Due to its vital role, the ministry's scope of work has been considered as the key pillar for growth and development of the economy.