The nation’s economic landscape in 2025 saw the government approving 18 major Foreign Direct Investment (FDI) projects worth a staggering Nu 201.9 billion, marking one of the largest inflows of foreign capital in recent years, signaling growing confidence in Bhutan as a destination for international investors.
Addressing the media yesterday (January 23, 2026), Namgyal Dorji, Minister for Industry, Commerce and Employment, hailed the surge in investment as a game-changer. “Bhutan’s FDI landscape is showing unprecedented growth, with projects spanning hydropower, manufacturing, services, and more. These investments are vital for our sustainable economic development,” he said, underlining the strategic importance of foreign capital in driving the nation’s future.
Among the newly approved projects, two major hydropower initiatives—Dorjilung Hydropower and Wangchhu Hydroelectric Power Limited—stand out. These are expected to dramatically boost Bhutan’s renewable energy capacity, reinforcing the country’s commitment to clean energy and climate resilience. The Department of Industry reported approval of 14 FDI projects totaling Nu 13.76 billion. While the number of projects was slightly lower than in 2024, the total investment value skyrocketed, largely due to Tata Power Company Limited’s Nu 68.9 billion investment in Khorlo Chhu Hydropower Limited, which the Minister described as a “landmark project for Bhutan’s economy.”
By the end of 2025, Bhutan’s total FDI portfolio reached 135 projects, including the newly approved initiatives. Of these, 64 projects are already operational while 71 remain under construction, reflecting steady progress in translating foreign investment into tangible development.
Bhutan’s FDI landscape is strikingly diverse. Tourism and hospitality lead the way, with 41 projects, reflecting the nation’s growing appeal as an international travel destination. The Information Technology and IT-Enabled Services sector follows closely with 36 projects, highlighting Bhutan’s emergence as a hub for digital innovation. Agriculture and dairy projects contributed ten initiatives, while power-intensive manufacturing added twelve. Financial services attracted seven projects, indicating stable foreign interest in banking, insurance, and related sectors. Building materials manufacturing accounted for five projects, pharmaceutical industries four, and the Technical and Vocational Education and Training sector recorded three. Hydropower and gases each accounted for two projects, showing that the country is investing strategically across both traditional and emerging industries. This diverse sectoral mix demonstrates Bhutan’s determination to diversify its economy, reduce reliance on a single industry, and create long-term growth opportunities.
The economic impact of these FDI projects is already tangible. For the income year 2024, FDI companies contributed Nu 2,373.852 million in taxes, a 14.2 percent increase from the previous year’s Nu 2,078.47 million. These contributions, including corporate taxes, customs duties, and other levies, provide critical funding for public services and infrastructure. The Minister emphasized that the revenues underscore the positive role foreign investment plays in Bhutan’s economy. “The tax revenue generated by FDI companies is not just numbers on a balance sheet—it is a catalyst for jobs, development, and sustainable growth,” the Minister said.
Looking ahead, the government is prioritizing quality investments that align with Bhutan’s development goals, environmental commitments, and job creation targets. Minister Dorji noted that the administration is streamlining procedures and offering targeted incentives to make Bhutan a preferred destination for foreign investors. “Our strategy is clear: attract investments that complement Bhutan’s vision for sustainable growth while providing opportunities for citizens and entrepreneurs. We are committed to a transparent, investor-friendly environment that encourages long-term engagement,” he said.
The momentum is expected to continue as ongoing projects take shape and new investments are launched. Analysts suggest that the surge in FDI will bolster Bhutan’s economic resilience, diversify its industrial base, and strengthen its position in regional and global markets. With landmark projects such as Tata Power’s hydropower investment, Bhutan is positioning itself as a leader in renewable energy and infrastructure development.
The Minister, MoICE concluded with an optimistic outlook, emphasizing that foreign direct investment is a key driver of Bhutan’s development journey. “With continued investor support and strategic policies, Bhutan’s economy is poised for a bright, sustainable, and globally competitive future,” he said.
2025 may well be remembered as a turning point for Bhutan. With record-breaking approvals and mega-investments, the country is stepping firmly onto the global investment map, signaling bold growth, renewable energy leadership, and economic transformation. The wave of foreign capital promises not only to fuel Bhutan’s immediate development but also to lay the foundation for a resilient, diversified, and internationally competitive economy for decades to come.
By Sherab Dorji
From Thimphu
