Agriculture consists largely of subsistence farming and animal husbandry.
Rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive. The economy is closely aligned with India's through strong trade and monetary links. The industrial sector is small and technologically backward, with most production of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labor. Much of the impetus for growth has come from large public-sector companies.