Economy

Nepal has an agrarian market economy. People are more dependant on agriculture rather than education and industrialization. Less than one-fifth of the total land area is arable, and agricultural productivity is very low.
Rice is the main food. Maize, wheat, potatoes, sugarcane, and millets are also widely grown. Nepal is a major producer of medicinal herbs, which grow on the Himalayan slopes. Cattle, buffalo, goats, and sheep are raised for meat, dairy products and wool. Forestry is an important industry and the backbone for Nepal.
The growing industrial sector accounts for much less than one-tenth of the GNP and employs less than 1 percent of the total workforce. The government has promoted the use of domestic raw materials in manufacturing, and leading manufactures include cotton garments, bricks, tiles, paper, construction materials, and processed foods. Traditional products such as baskets, edible oils, and cotton cloth are produced by cottage industries.
Tourism is becoming an increasingly important source of foreign exchange. Among the other areas the Kathmandu valley is equipped with the necessary amenities for foreign tourists.

As Nepal is a landlocked country India has dominated Nepal’s foreign trade and has granted only limited rights for transportation. Nepal's major exports include cotton garments, cereals, jute, timber, oilseeds, ghee, potatoes, medicinal herbs, and hides. Capital and consumer goods, mineral fuels, and chemicals dominate imports.