Traditional Chinses Language Option KoreanLanguage Option Thai Language Option Dutch Language Option Finnish Language Option Swedish Language Option Danish Language Option Polish Language Option Portuguese Language Option Irish Language Arabic Language Option
Economy of Bhutan | About Bhutan | Bhutanitis Travels


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. The very popular of all are farmers’ markets supplying with fresh, organic, local produce and it is found everywhere in the country. The staple foods in Bhutan are crops like rice, buckwheat, maize, and wheat; simultaneously, cash crops like ginger, potatoes, cardamom, apples, oranges, and chilies are found. The country has established fruit based industries for farmers, allowing the nearby areas to sell their produce for additional revenue.

Bhutan’s rich biodiversity encourages Cottage Industries with ample forest resources contributing development and thriving handicraft industry. Highly skilled craftsmen design number of attractive and intricate products out of wood, cane, and bamboo. These include hats, traditional, backpacks, floor mats, and bowls. These items are bought by local people and tourists, supplying outside the border is also an income source.


Tourist flight landing at airport
Tourist flight landing at Paro

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 dedicated to building a sustainable tourism industry that is not only financially viable but also limits the negative cultural and environmental influences mostly due to mass tourism. Government’s policy of tourism is guided by “High Value, Low Impact”, seeking to ensure that it encourages the only the most perceptive visitors having deep respect for the natural environment, traditions, cultural values, and the policy.


Economy of Bhutan
Chukha Hydro Power Dam

The fast flowing rivers fed by the glacier of the Himalayas give enormous potential to hydroelectricity projects. 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 Basa-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. The government is very cautious about development plan and makes decision viable to the natural environment.


The Manufacturing subdivision is an additional foremost contributor to state income. 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 to the natural environment. As of now, Bhutan has the same exchange 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


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...

Read More
People in Bhutan, About 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%...

Read More
Bhutan Culture & Heritage, About Bhutan


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

Read More
Bhutan Flora & Fauna, About Bhutan


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

Read More
Bhutan Arts & Crafts, About Bhutan


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

Read More
Religion in Bhutan, About Bhutan


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

Read More
Foods in Bhutan, About 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...

Read More
Climate in Bhutan, About 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...

Read More
Bhutan Government System, About Bhutan


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

Read More
Economy in Bhutan, About 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...

Read More
Gross National Happiness, About Bhutan


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

Read More
Bhutan Natural Geography, About Bhutan


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

Read More