The population of Nepal was recorded to be about 25 million as of July 2005. 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.