Economy and Social Life:

The Bhutanese Economy has undergone significant changes since the inception of planned economic development in the 1960’s. Within a span of 40 years the country has transformed itself from predominantly subsistence agrarian to a modern trading economy with expanding regional and global economic ties.

Agriculture is still the main source of livelihood for about 79 percent of the people who live in rural areas. Agriculture sector, including horticulture and livestock rearing contribute to about 39.5 percent of the GDP. Majority of the farmers practice agriculture based on traditional methods, although farm mechanization and the hybrid seeds have been introduced since the inception of planned economic development. The major crops of Bhutan include: rice, maize, wheat and potatoes. Cash crops like apples, mandarins and cardamom are also cultivated for export. There are also pastoralists who rear cattle and yaks and lead a nomadic life.

Bhutan is endowed with enormous hydroelectric potential. With an estimated potential to generate about 30,000 MW of electricity, this sector is expected to contribute substantially to the economy.
The manufacturing sector in Bhutan is small and is mainly dependent on agro mineral-based industries. This sector contributes about 9.6 percent to the GDP. The main product includes processed food, cement, Ferro silicon, calcium carbide, and wood based industries.

The Royal Government of Bhutan in the economic development endeavors, aims to strike a balance between the paces of economic development and need to preserve Bhutan’s unique cultural heritage and pristine natural environment.

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