In a significant update to Bhutan’s economic landscape, the Industry Census of Bhutan 2024 has highlighted that industries of all sizes collectively contributed 49.96 percent—or Nu 124.69 billion—to the nation’s gross domestic product (GDP) last year. The census, released yesterday, provides a comprehensive overview of Bhutan’s industrial sector and its vital role in the country’s economic development.
The report breaks down the contributions by industry size, revealing that medium and large industries were the primary contributors, accounting for 46 percent of the total industrial output, or Nu 114.81 billion. In contrast, cottage and small industries contributed Nu 9.88 billion, which is 3.96 percent of the total. This data underscores the prominent role of larger enterprises in driving Bhutan’s industrial economy.
The census also shows that the service industry leads in scale with 11,032 units, significantly outpacing production and manufacturing, which has 1,355 units, and contracts, with 621 units. This distribution highlights the service sector’s dominance in Bhutan’s industrial framework.
Ownership patterns reveal a predominance of sole proprietorships, which make up 95.91 percent of the total with 12,477 establishments. Private limited companies follow with 1.83 percent, and partnerships account for 1.13 percent. This concentration of sole proprietorships suggests a potential for growth and diversification in the industry sector.
Employment data from the census indicates that the industrial sector employed 76,768 individuals last year, with Bhutanese nationals comprising 91 percent of the workforce. Among the non-Bhutanese workers, 2,280 were casually employed (33.13 percent), 1,755 were on contract (25.5 percent), and 133 were individuals with disabilities.
Chhime Tshering, the Director General of the Department of Industry, emphasized the importance of the census in bridging data gaps and validating existing information. He noted that the report would be instrumental in guiding policy-making, strategic planning, and enhancing the industrial ecosystem to boost revenue and job creation.
Minister of Industry, Commerce, and Employment, Namgyal Dorji, described the census as a crucial tool for identifying development priorities in industrial growth. He acknowledged that the private sector’s progress has been hampered by systemic issues, including challenges in accessing finance, market access, and a shortage of skilled workers. The census data reflects these challenges, with 42 percent of industries struggling with market access, 33.5 percent facing financial hurdles, and 17.3 percent encountering skill shortages.
Lyonpo Dorji called for a two-fold increase in job creation within the sector over the next five years and highlighted the need for a shift from sole proprietorships to more diversified business structures. He emphasized the importance of developing high-value industries that drive financial growth, innovation, and job creation, and advocated for supporting small industries through measures such as tax breaks.
The census also identified policy interventions as a top concern, with 41.32 percent of industries stressing its importance. Access to finance at low interest rates was highlighted by 11.04 percent of industries, while 10.85 percent mentioned the general accessibility to finance.
Out of the 15,112 operational industries, the census covered 13,260. Of these, 23,241 industries were registered and filed business income tax, indicating a robust level of formal economic activity in the country.
As Bhutan navigates its path towards industrial growth and economic development, the insights from the 2024 Industry Census will play a pivotal role in shaping future policies and strategies aimed at enhancing the sector’s contribution to the nation’s prosperity.
