Catalyzing Bhutan’s Cottage And Small Industries As An Important Driver of Economic Diversification
Till date, there are 20,908 cottage and small industries which generate 96,177 jobs in Bhutan.
By Karma Chuki Namgyel | The Bhutanese
According to the State of the Nation Report, cottage and small industries in Bhutan is regarded as a priority sector. Till date, there are 20,908 cottage and small industries (CSIs) generating 96,177 jobs. The number has increased by 1,297 in the last year.
CSIs have the potential to narrow the income gap through economic diversification. The focus on boosting economic activities in villages and local communities can also help to enhance rural income and engage Bhutan’s growing young population productively, as stated in the report.
The districts of Paro, Dagana and Trashigang have been identified as the three industrial sites where youth can start their own cottage and small industries.
Source: Map of Bhutan
Meanwhile, the preparation of a detailed project report for the establishment of a CSI estate in the district of Tsirang has also been completed.
Active steps taken to promote cottage and small industries in Bhutan
To nurture entrepreneurs, 27 start-ups were hosted in the newly established Start-up Centre and another eight more in the old service centre at Changzamtog.
So far, the government has taken certain initiatives to promote cottage and small industries, such as approving Start-up and CSIs as a flagship program in the 12th Five Year Plan, which is projected to create 4,700 jobs.
To boost the business climate in Bhutan, a developed priority sector lending application system is now easily accessible to everyone using the G2B portal to leverage on the use of information and technology.
Tshomen Blue - Tshomen means 'mermaid' in the Eastern Bhutanese language, Sharchop.
Photo: Bhutan Natural
In addition, a handmade handicraft textile has also been selected to facilitate the export of horticulture and textile handicraft products through Brand Bhutan.
This will provide more opportunities for artisanal handicraft producers to sell their products. Moreover, exporters can learn and gain more experience by participating in international trade exhibitions and study visits abroad.
To support the agricultural sector, the government has also initiated a government-buy-back mechanism where farm shops and the Food Corporation of Bhutan will grade and buy products from the farmers.
Coming soon - Bhutan Economic Forum for Innovative Transformation
Going forward, the Bhutan Economic Forum for Innovative Transformation (BEFIT) is slated to be held in July 2019.
Initiated by the Ministry of Economic Affairs, in close coordination with the Royal Monetary Authority of Bhutan, the theme will be ‘Catalyzing Bhutan’s CSI Sector as an Important Driver of Economic Diversification’.
This article first appeared in The Bhutanese and has been edited for Daily Bhutan.