The population of Nepal was recorded to be about 25 million as of July 2002. Eighty-six percent of Nepalis follow Hinduism; while eight percent follow Buddhism and three percent follow Islam. The population comprises various groups of different races which are further divided into different castes. The distinction in caste and ethnicity is understood more easily with a view of customary layout of the population.

Some of the main groups are such: Gurungs and Magars who live mainly in the western region; Rais, Limbus and Sunwars who live in the eastern mid hills; Sherpas, Manangpas and Lopas who live near the mountains of Everest, Annapurna and Mustang respectively; Newars who live in and around the capital valley of Kathmandu; Tharus, Yadavas, Satar, Rajvanshis and Dhimals who live in the Terai region; and Brahmins, Chhetris and Thakuris generally spread over all parts of the country.

Nepali is the official language of the state, spoken and understood by 100 percent of the population. Multiple ethnic groups speak more than a dozen other languages in about 93 different dialects. English is spoken by many in government and business offices. It is the mode of education in most private schools of Kathmandu and some other cities.

ETHNIC DISTRIBUTION
The Northern Himalayan People
In the northern region of the Himalayas are the Tibetan-speaking groups namely Sherpas, Dolpas, Lopas, Baragaonlis, Manangis. The Sherpas are mainly found in the east in the Solu and Khumbu region; the Baragaonlis and Lopas live in the semi-deserted areas of Upper and Lower Mustang in the Tibetan rain-shadow area; the Managis live in Manang district area; while the Dolpas live in Dolpa district of West Nepal, one of the highest settlements on earth at 4,000 meters.

The Middle Hills and Valley People
Several ethnic groups live together in harmony in the middle hills and valleys. Among them are the Magars, Gurungs, Tamangs, Sunuwars, Newars, Thakalis, Chepangs and majority of Brahmans and Chhetris. The Brahmans and Chhetris have long dominance in all pervading social, religious and political realms. There are also some occupational castes namely: Damai (tailor), Sarki (cobbler), Kami (blacksmith) and Sunar (goldsmiths). Though, there exist numerous dialects, the language of unification is the national language, Nepali.

The Middle Hills and Valley People
Several ethnic groups live together in harmony in the middle hills and valleys. Among them are the Magars, Gurungs, Tamangs, Sunuwars, Newars, Thakalis, Chepangs and majority of Brahmans and Chhetris. The Brahmans and Chhetris have long dominance in all pervading social, religious and political realms. There are also some occupational castes namely: Damai (tailor), Sarki (cobbler), Kami (blacksmith) and Sunar (goldsmiths). Though, there exist numerous dialects, the language of unification is the national language, Nepali.

Ethnic Diversity in the Kathmandu Valley
Kathmandu Valley represents a cultural cauldron of the country, where, people from varied backgrounds have come together to present a melting pot. The natives of the Kathmandu Valley are the Newars. Newari culture is an integration of both Hinduism and Buddhism. The Newars of Kathmandu Valley were traders or farmers by occupation in the old days.

The Terai People
The main ethnic groups in Terai are Tharus, Darai, Kumhal, Majhi and other groups that have roots in India. They speak north Indian dialects like Maithili, Bhojpuri. Owing to the fertile plains of Terai, most inhabitants live on agriculture. There are, however, some occupational castes like Majhi (fisherman), Kumhal (potter) and Danuwar (cart driver).