Economy of Bhutan

Bhutan is a small country with less number of a population but had been developing very fast in recent years. And although the literacy rate is increasing with the government policy, that all child should be enrolled in the schools, and also offering non-formal education to those in the villages who didn't get a chance to go to schools so that at least they can know the basic reading and writing.


The livelihood of most of the Bhutanese depends on agriculture as we do have a good percentage of people living in rural areas, though the rate of rural-urban migration is high.

Bhutan has a wide range of elevation so most of the crops, vegetables, and fruits can be grown. Though the type of crops grown differs from place to place.

In the southern part of the country people grow rice as the main food crop and cardamom and ginger as cash crops. Among the fruits Mango, Banana Oranges, Litchi, Pineapples, Jack fruits are popular.

Where as in mid area still rice is popular but on the eastern side, even maize is grown too. The cash crops grown in these regions are mainly potato and apple. Even other seasonal fruits such as peach, plum, apricots are popular.

In the northern side it's pretty cold so they don't grow much but rear more animals like Yaks and Sheep for their livelihood. They can grow only in peak summer when the weather becomes a bit warm and they grow wheat, buckwheat, etc.


The highest revenue to the country is from electricity. Bhutan being a mountainous country have a lot of fast-flowing rivers so we do have a good number of hydropower plants that are already in operation and some are under construction.


Druk Green power corporation is the one who looks is these hydropower plants and as of now Chukha Hydropower (336 MW), Basochu (64 MW), Kurichu (60 MW), Tala(1020 MW) and recently Mangdechu (720 MW) was commissioned. From which more than 80% is exported to India.

With its abundant water resources, Bhutan still has the capacity to generate more than 20,000 MW of electricity. However, the government is proceeding cautiously with the construction of new plants in order to minimize the impact upon the surrounding areas.


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.

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.

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