In recent years, the country's efforts to expand into manufacturing industries and other technological sectors have achieved much progress. Farming is the main economic activity followed by manufacturing, trade and tourism. The chief sources of foreign currency earnings are marchandise export, services, tourism and Gurkha remittances. Rolling fields and neat terraces can be seen all over the Terai flatlands and the hills of Nepal. Even in the highly urbanized Kathmandu Valley, large tracts of land outside the city areas are devoted to farming.
Rice is the staple diet in Nepal and around three million tons are produced annually.
Other major crops are maize, wheat, millet and barley. Major industries are woolen carpets, garments, textiles, leather products, paper and cement. Other products made in Nepal are steel utensils, cigarettes, beverages and sugar. There are many modern large-scale factories but the majority are cottage or small scale operations. Most of Nepal's industries are based in the Kathmandu Valley and a string of Small towns in the southern Terai Plains.