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The Economy of Nepal

Nepal at a Glance

Nepal is a landlocked Himalayan country of around 30 million people whose economy runs on remittances, farming, tourism and its close link to India.

Nepal lies between India and China, with high mountains in the north and fertile plains along the Indian border.

Economy

Farming employs most people, while remittances from workers abroad are unusually large.

Trade

Most trade passes through India, which supplies fuel, goods and access to sea ports.

Position

Nepal is a lower-middle-income country with a young population.

Two worlds

Trekkers in the Himalaya and farmers in the Terai plains live in very different economies.

Assuming Nepal is only mountains and tourism

The lowland plains are its farming heartland.

Key takeaways
  • Nepal is landlocked between India and China.
  • Farming employs most people.
  • Remittances are huge.
  • India is the main trade route.
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