Bhutan has released its inaugural Industry Census Report for 2024, providing a comprehensive analysis of the country’s industrial sector based on data collected throughout 2023. The report, hailed as a landmark achievement, offers detailed statistics and trends crucial for shaping future economic policies.
According to the report, small-scale industries constitute the majority, representing 70.59% of all industries surveyed, followed by cottage-scale at 24.75%, and medium and large-scale industries at 3.01% and 1.65% respectively. Service industries dominate across all scales, comprising 84.81% of the total licenses issued, with production and manufacturing (P&M) at 10.42%, and contracts at 4.77%.
Economically, these industries play a pivotal role, contributing 45.84% to Bhutan’s GDP, amounting to Nu 117,723 million. Medium and large industries account for the lion’s share, valued at Nu 107,848 million, while cottage and small industries contribute Nu 9,875.49 million.
Ownership patterns reveal that sole proprietorships dominate the sector at 95.91%, with notable female representation at 53.28%. However, there is a noticeable gender gap in medium and large-scale industries, where male ownership predominates.
Education-wise, a significant proportion of industry owners have attained at least middle secondary education (17.33%), with 11.94% holding Bachelor’s or Postgraduate Degrees. The median age of sole proprietors and partners stands at 40 years.
Key challenges highlighted include access to finance, market opportunities, and skilled labor shortages. Recommendations stress the need for targeted policy interventions and improved financial accessibility to bolster growth and address sectoral challenges effectively.
The census also sheds light on employment dynamics, revealing that Bhutanese nationals comprise 91% of the workforce, with notable disparities in gender representation in certain sectors. Moreover, there is a growing demand for skilled workers, particularly in craft and related trades.
Overall, the Industry Census Report serves as a crucial tool for policymakers, providing actionable insights to foster industrial development and ensure sustainable economic growth in Bhutan. As the government deliberates on future strategies, the findings are expected to guide initiatives aimed at overcoming existing hurdles and maximizing the sector’s potential.
The report also acknowledges the importance of addressing operational challenges, such as licensing issues and market accessibility, while advocating for enhanced collaboration and streamlined processes across agencies for improved governance and compliance.
Meanwhile, the inaugural Industry Census Report 2024 marks a significant milestone in Bhutan’s journey towards economic diversification and inclusive growth, setting a benchmark for informed decision-making and strategic interventions in the industrial sector.
By Tashi Namgyal, Thimphu
