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Nepal was formerly the world’s only constitutionally declared Hindu state, but following the movement for democracy in early 2006 and the breaking of King Gyanendra's power, the Nepali Parliament amended the constitution to make Nepal, like its neighbour India, a secular state.

According to the 2001 census, 80.6 percent of Nepalese are Hindu, 10.7 percent are Buddhist, 4.2 are Muslim, 3.6 percent are Kirat (an indigenous religion), 0.5 percent are Christian, and 0.4 percent are classified as other groups. Although the population is mostly Hindu, since the 1971 census Hindus have shown the greatest decline as a proportion of the population, and Buddhists and Kirats have increased the most: in 1971 Hindus were 89.4 percent of the population, Buddhists 7.5 percent, and Kirats statistically 0 percent. However, statistics on religious groups are complicated by the ubiquity of dual faith practices, particularly among Hindus and Buddhists. Moreover, shifts in the population’s religious composition also reflect political changes. The 1990 constitution ended the government’s promotion of Hindu nationalism and official suppression of political participation based on religious, cultural, and linguistic traits. This policy has enabled greater freedom of religious expression and allowed the census to officially enumerate more religious groups. As well, Christian missionaries, both Nepalese and foreign, have increased their efforts in Nepal.

The geographical distribution of religious groups in the early 1990s revealed a preponderance of Hindus, accounting for at least 87 percent of the population in every region. The largest concentrations of Buddhists were found in the eastern hills, the Kathmandu Valley, and the central Tarai; in each area about 10 percent of the people were Buddhist. Buddhism was relatively more common among the Newar and Tibeto-Nepalese groups. Among the Tibeto-Nepalese, those most influenced by Hinduism were the Magar, Sunwar, and Rai peoples. Hindu influence was less prominent among the Gurung, Limbu, Bhote, and Thakali groups, who continued to employ Buddhist monks for their religious ceremonies.

• This article contains material from the Library of Congress Country Studies, which are United States government publications in the public domain. - Nepal profile Nepal country study

• Buddhism in Nepal
• Hinduism in Nepal