Nepal Travel Trek

Economy of Nepal

Nepal has an agrarian market economy. Agriculture accounts for about one-half of the GNP and employs more than nine-tenths of the workforce. Less than one-fifth of the total land area is arable, and agricultural productivity is very low. A hydroelectric station southeast of Kathmandu has proved to be very beneficial for the farmers. Rice is the staple 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. Forestry is an important industry. 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