Despite Bhutan’ small population there has been much economic development in recent years and the economy is
While a large part of the Bhutanese population is still illiterate and reside in rural areas with approximately 1in 5
still living under the poverty line, the majority of all Bhutanese have shelter and are self-sufficient. Rapid
modernization has brought about vast improvements in the living standard of the Bhutanese people. All villages now
have access to basic amenities such as education, running water, basic healthcare and are connected by roads and
electricity. Even the most remote villages have connection to the telecommunication network including mobile
The Bhutanese economy is predominantly agricultural. Farmers supplement their income through the sale of animal
products such as cheese, butter and milk. Farmers’ markets are common throughout the country, supplying the
people with fresh, organic, local produce.
The main staple crops are rice, maize, wheat and buckwheat while cash crops are predominantly potatoes, apples,
oranges, cardamom, ginger, and chilies. A fruit based industry has been established in the capital allowing farmers
from the nearby areas to sell their produce and thereby earn additional revenue.
Bhutan’s rich biodiversity provides the country with ample forest resources and this has brought about the
development of a thriving cane and bamboo handicraft industry. Craftsmen weave a number of beautiful and
intricate items out of bamboo and cane including hats, backpacks, floor mats and traditional bowls. These items are
then sold to tourists or Bhutanese, supplying a secondary income source.
The Bhutanese Tourism Industry was first opened in 1974. Since then it has grown to become, a major contributing
factor to the Bhutanese economy creating countless employment opportunities and generating additional revenue for
The government is committed to building a sustainable tourism industry that is not only financially viable but also
limits the negative cultural and environmental impacts commonly associated with the culture of mass tourism. By
establishing a policy of “High Value, Low Impact’ tourism, the kingdom of Bhutan seeks to ensure that it attracts
only the most discerning visitors with a deep respect for cultural values, traditions and the natural environment.
To this end efforts have been made to ensure that even remote areas are publicized and able to reap the benefits of
tourism while still respecting their traditions, culture and natural environment.
Due to its fast flowing, glacier-fed rivers, Bhutan has enormous potential to produce hydroelectricity. With the
construction of several major dams, the power sector has undeniably been the biggest contributor to the Bhutanese
exchequer. The Chukha Hydro Power Corporation, the Tala Hydro Power Corporation, the Baso Chu Hydro Power
Corporation and the Kurichu Hydro Power Corporation, under the umbrella of Druk Green Power Corporation, are
some of the existing mega projects in the country. The 1500 MW of power they generate, most of which is exported
to our neighboring country India, barely scratches the surface of Bhutan’s untapped hydroelectric potential. With its
abundant water resources, Bhutan still has the capacity to generate another 30,000 MW of electricity. However, the
government is proceeding cautiously with new construction projects in order to minimize the impact upon the
The Manufacturing sector is another major contributor to national revenue. With the industrial sector established in
Pasakha, small scale industries such as cement plants, calcium and carbide, steel and Ferro silicon, Coca Cola and
also wood based industries have started developing.
As a result of the recent economic development, Bhutan has one of the highest per capita incomes in South Asia at
US$1,321. However despite this high level of growth and development, efforts stringent regaliations have been
enacted in order to protect Bhutan’s natural environment.