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Economy of Bhutan | About Bhutan | Bhutanitis Travels

ECONOMY OF BHUTAN

Economy of Bhutan

Bhutan small population of just 774794 and the economy of the country is also very small. However, the per capita income stands at 2611 USD. As of 2012, the annual growth rate of the Bhutanese economy was 5.46 % and the poverty rate stood at 12 %. Despite Bhutan’s small population there has been much economic development in the recent years and the economy is growing rapidly. The GDP stood at 5.871 billion USD as of 2014.

Even though a large part of the Bhutanese population is still illiterate and resides in rural areas, all Bhutanese are self-sufficient and have access to basic necessities of life such as food and shelter. 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 the connection to the telecommunication network including mobile

phone service. The Bhutanese economy is predominantly agrarian. Agriculture is the backbone of the Bhutanese economy. 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 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.

Cottage Industries 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.

Tourism 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. 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.

Hydroelectricity
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. Some of the existing mega projects in the country are The Chukha Hydro Power (CHPC) Corporation, the Tala Hydro Power Corporation(THPC), the Baso-Chu Hydro Power Corporation(BHPC) and the Kurichu Hydro Power Corporation(KHPC), under the umbrella of Druk Green Power Corporation(DGPC). As of now, Bhutan only harnesses 1500 MW of power inclusive of all the mega projects in the country. Bhutan has the total hydropower potential to generate 30,000 MW of electricity. However, the government is preceding cautiously with new construction projects in order to minimize the impact on the environment.

Manufacturing
The Manufacturing sector is another major contributor to national revenue. The industrial sector is established in Pasakha, a few miles away from the border town of phuentsholing. Small scale industries such as cement plants, calcium and carbide, steel and Ferrosilicon, Coca-Cola and wood industries have also started developing in the pasakha industrial estate. Bhutanese economy has grown drastically over the years. Bhutan has one of the highest per capita incomes in South Asia at US$1,321. The Bhutanese government has set up stringent rules and regulations in the efforts to minimize the harm upon the natural environment. As of now Bhutan has the same currency value as compared to Indian currency. One ngultrum (Bhutanese currency) is equal to one Indian rupee (INR).

About Bhutan

Informations About Bhutan, Know About Bhutan Before You Travel To Bhutan.
History of Bhutan, About Bhutan

HISTORY OF BHUTAN

Bhutan is also known to the outside world as the “Land of the thunder Dragon” or the “last Shangri-La”. Bhutan was under isolation until the 1960s ...

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People in Bhutan, About Bhutan

PEOPLE IN BHUTAN

The estimated population of the country is 7, 50,000 with the growth rate of 3.1% per year. Bhutanese economy is agrarian and almost 65% of the total...

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Bhutan Culture & Heritage, About Bhutan

BHUTAN CULTURE & HERITAGE

Culture is strongly integrated into the lives of Bhutanese people and are directly associated with religion. Culture in Bhutan is displayed in attire...

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Bhutan Flora & Fauna, About Bhutan

BHUTAN FLORA & FAUNA

The type of forest found in Bhutan are Upland Hardwood Forest ,Lowland Hardwood Forest, and Tropical Lowland which are a collection...

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Bhutan Arts & Crafts, About Bhutan

BHUTAN ARTS & CRAFTS

Bhutanese art is religiously inspired and is mainly influenced by Tibetan Buddhist art Bhutanese have practised it for centuries and developed...

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Religion in Bhutan, About Bhutan

RELIGION IN BHUTAN

The state religion of Bhutan is Buddhism. Approximately 75% of the total populations in Bhutan are followers of Buddhism. Bhutan is...

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Foods in Bhutan, About Bhutan

FOODS IN BHUTAN

Bhutanese cuisine is mostly made out of meat items and more importantly chillies. Chillies are an essential part of nearly every dish and are considered...

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Climate in Bhutan, About Bhutan

CLIMATE IN BHUTAN

Bhutan's climate is as varied as its altitude and, like most of Asia it is affected by monsoons. Western Bhutan is particularly affected by monsoons...

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Bhutan Government System, About Bhutan

BHUTAN GOVERNMENT SYSTEM

Until the beginning of 20th century, Bhutan was ruled by the dual system of administration known as "chhosi" system. The chhosi system was initiated...

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Economy in Bhutan, About Bhutan

ECONOMY IN BHUTAN

Bhutan small population of just 774794 and the economy of the country is also very small. However, the per capita income stands at 2611 USD. As of 2012...

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Gross National Happiness, About Bhutan

GROSS NATIONAL HAPPINESS

Bhutan is popular today, for being the happiest country in the planet. The concept of Gross happiness is much talked about in the country...

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Bhutan Natural Geography, About Bhutan

BHUTAN NATURAL GEOGRAPHY

Bhutan is a landlocked country situated in the Himalayas. Bhutan shares its borders with The Republic of India in the east, west and south...

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