Manufacturing of all kinds of products is still at the developmental stage in Nepal. In spite of the fact that many kinds of consumer goods are produced in Nepal, it represents less than 15 percent of the GDP. Major sectors of production and industries are carpets, garments, textiles, leather products, paper, cement and many kinds of handicrafts and art-crafts. Other important products of Nepal are steel utensils and other products, cigarettes, sugar, liquors and beverages. Although many national and multinational large-scale factories have been established in the recent years, yet majority of the industries are still the cottage and small scale operations. Most of Nepal’s industries are based in the Kathmandu Valley and the prominent cities in the southern plain areas of Nepal.
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