Economy

GDP: Nu.54,149.8 Million = approx USD 1130.5 million (2009)
Real GDP Growth: 5% (2009)Major Industries: Hydroelectricity generation, Agriculture, Forestry, Tourism
Major trading partners: Exports – India, Bangladesh and Singapore; Imports – India, Singapore, Japan, China, US, UK
Aid & development: The Government of India finances nearly three-fifths of Bhutan's budget expenditures. Bilateral aid programmes are operated by Denmark, Japan, Switzerland, the Netherlands, Austria, and the European Union, and the United Nations Development Programme (UNDP) maintains an in-country office.
Exchange rate: £1 Pound Sterling (GBP) = Nu 78.6 Bhutanese ngultrum (BTN). The value of the ngultrum is pegged at 1 Indian rupee. (November 2011)

Bhutan has pursued a cautious policy of modernisation while retaining a significant agriculture-based economy. Agriculture employs about 64.2% of the workforce (2006) and accounted for 21.4%  of GDP in 2006. Tourism is Bhutan largest hard-currency earner, providing USD 29 million in 2007.

There is little heavy industry, apart from a cement plant, a chemical plant and a timber factory; most manufacturing is via small-scale local industries. The export of hydro-electric power to India is a growing industry and is the single most important source of revenue. Bhutan has an estimated hydropower potential of around 30,000MW, of which so far only about 2,500MW is exploited.  India is by far the largest market for Bhutan's exports and is still a significant source of development aid. Bhutan’s tenth Five Year Plan commenced in 2008. The Economic Development Policy (EDP) has as its priority the strengthening of the economic base and emphasises Bhutan’s concept of ‘gross national happiness’. A new Foreign Direct Investment (FDI) Policy is now in place, which puts priority on FDI in the areas of tourism, educational facilities and hydropower, among others. A major aim is to provide employment for the growing number of educated young people.

Trade and Investment

Bhutan has evolved from a closed economy to a trading nation that exhibits a high degree of dependence on trade. The trade openness index was estimated to be around 75% in 2005/06 and reflects the Royal Government’s commitment to a liberal trade policy. The trade sector was also the highest contributor to national revenue and accounted for around one third of total national revenues in 2005/06, exceeding electricity revenue generation by a percentage point. 

Exports have grown rapidly but overall the country’s trade deficit continues to widen due to an even faster growth in the value of imports. For most of past plan periods, the country has consistently been an import dependent economy with imports exceeding 60% to 70% of GDP. As a result of the huge and rising import bills, trade deficit climbed to a record Nu.10 billion in 2005/06 but has decreased thereafter. The export portfolio both in terms of products and markets is very narrow with the top ten commodities accounting for over 80% of the total export values and with 94% of these exports bound for India.

Under the strategic framework of the Tenth Plan, the trade, manufacturing and services sectors represent the core areas of national industrial policy which is at the heart of the Tenth Plan’s development strategy to vitalize economic development and achieve poverty reduction. This represents a significant challenge in view of the critical and chronic constraints that restrict the further development of the sector relating to high trading costs, weak economies of scale, poor productivity, nascent and underdeveloped private sector, inadequate infrastructure etc. At the same time, the sector holds great potential that can effectively galvanize the economy and establish it on a truly sustainable basis.

Travel & Tourism

Bhutan is a relaxed & calm country with commendable customary values based on religion, admiration for the royal family and care for the environment. Located in the magnificent Himalayas, Bhutan is also named as 'The Land of Peaceful Thunder Dragon' due to the regular feature of storms in the Himalayan region. Spread over 18,146 miles, Bhutan offers magnificent mountain views, unbelievable scenic beauty, thrilling wildlife and a rich culture and standard of living which Bhutanese people still strives to preserve in the face of modernity. Discover the distinctive Bhutan architecture, Buddhist monasteries, carved wooden houses and the fine crafts on your tour to Bhutan.