In a bold move to redefine its economic landscape, Bhutan has unveiled an ambitious plan to elevate its economy tenfold by 2050. The strategy, encapsulated in the “21st Century Economic Roadmap – A 10X National Economic Vision,” was launched yesterday to mark the birth anniversary of His Majesty the King. This transformative blueprint aims to position Bhutan as a developed economy within the next three decades.
To realize this vision, Bhutan must sustain an annual GDP growth rate of 8 percent. The nation’s real GDP stood at USD 2.2 billion (Nu 185 billion) in 2023, with a nominal GDP per capita of USD 3,920. The roadmap underscores a commitment to national self-reliance, innovation, and sustainable growth while aligning with Bhutan’s cherished philosophy of Gross National Happiness (GNH).
A Future-Ready Economy with Core and Emerging Sectors
During the launch event, Namgyal Dorji, Minister of Industry, Commerce, and Employment, emphasized the importance of bolstering Bhutan’s core industries—hydropower, agriculture, and tourism—while simultaneously diversifying into high-growth sectors. By 2050, these core industries are expected to contribute 25-35 percent of the GDP.
The roadmap identifies five emerging sectors—digital economy, services, manufacturing, mining and minerals processing, and renewable energy—that will collectively account for 30-50 percent of GDP. This diversification aims to create knowledge-based jobs, integrate Bhutan into global value chains, and foster sustainable growth.
Sector-Specific Goals and Initiatives
- Hydropower: Bhutan plans to expand its hydropower capacity to 25,000 MW by 2050, generating 12-15 percent of GDP and employing 45,000 people. The government also aims to leverage renewable energy for manufacturing and technology sectors while developing expertise in hydroelectric technology for export.
- Agriculture: The sector is set to become a high-value, export-oriented industry, with 75 percent of produce from organic farming by 2050. The goal is to rank agricultural products among Bhutan’s top ten exports by 2030.
- Tourism: Bhutan’s tourism sector will evolve to attract premium markets, with offerings in wellness, adventure, and MICE tourism. By 2050, the sector aims to contribute 10-12 percent of GDP and generate 80,000 jobs.
- Digital Economy: By establishing eco-friendly data centers and fostering tech startups, Bhutan aims to contribute 10-15 percent of GDP from the digital sector by 2050. The country also plans to produce two unicorn companies within the next decade.
- Services: Bhutan will develop wellness hubs, healthcare services, and international education to contribute 10-12 percent of GDP. Plans include establishing two Business Process Outsourcing (BPO) centers within the next three years and positioning the Royal University of Bhutan among Asia’s top 250 universities.
- Manufacturing: The focus is on sustainable forestry products, high-end agri-processing, pharmaceuticals, and advanced manufacturing like electric vehicles and robotics, contributing 10-15 percent of GDP.
- Mining and Minerals: Bhutan aims to explore rare earth materials and leverage clean energy for sustainable minerals processing, targeting a GDP contribution of 4-5 percent.
- Energy: The country will invest in solar, biofuels, and green hydrogen, reducing fossil fuel dependence and establishing Bhutan as a green energy hub.
Strategic Enablers and Implementation
To drive this transformation, the government has identified seven strategic enablers: policy and governance excellence, private sector development, human capital enhancement, infrastructure improvements, expanded market access, a strengthened financial ecosystem, and innovation promotion. A Vision Delivery Unit under the Office of Cabinet Affairs and Strategic Coordination will oversee the implementation, collaborating with the private sector and international investors.
“This vision is not just a document; it is a call to action for every Bhutanese—entrepreneurs, policymakers, investors, and citizens—to come together and shape a prosperous future,” stated the Prime Minister’s Office.
Supported by the United Nations Development Programme (UNDP) under the Bhutan Opportunities for Leadership in Development (BOLD) project, this initiative promises inclusive growth and long-term sustainability. With this comprehensive roadmap, Bhutan stands poised to embrace the opportunities of the 21st century while staying true to its cultural heritage and environmental stewardship.
