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Bhutan’s main pillar of economy is Agriculture. More than 80% of its population depends on agriculture for their livelihood. Most of the farmers practice subsistence farming except for a few parts in the country. The government effort and the urbanization are now giving birth to more commercial farmers. The main agricultural exports are oranges, apples, potatoes, cardamoms, mushroom, asparagus, etc. The agriculture and livestock contributes about 40% to the Gross National Product.

Bhutan has a big forest cover of more than 70%. This contributes about 15 % to the GNP. This is because of the government’s policy of sustainable use of forest. Bhutan does not use forests for exploitative ends; the forests are used as ecological wealth.

Bhutan has made a very good progress in the tourism industry with the opening of tourism in the year 1975, Thereby giving a boom to the progress and trade of arts and crafts. The tourist arrival is increasing every year with the increase in tourism business. This has today become one of the main contributors to the Revenue of Bhutan government. Bhutan targeted for 100000 tourists in the year 2012 and achieved the target.

Hydro-electricity is the biggest revenue generator for the government of Bhutan. Bhutan has a big potential of electricity. The Chhuka Hydro Power Plant, the first electricity generator in the country generates 336MW of electricity. The biggest Hydro Power till date is the Tala hydropower and this generates 1020 MW. More Projects are coming up in the country. Most of electricity produced is exported to India.

The Manufacturing sector comprises of products like calcium carbide, Ferro alloys, wood products, cement, processed food, marble etc. This contributes around 14 % to the GDP. Bhutan’s present per capita income is US $ 1852 (2010). Bhutan has planned to facilitate the growth of more industries in the coming future in a sustainable manner.

Bhutan has also opened Foreign Direct Investment in the country and currently there are many FDI projects in Bhutan. 


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