The Bhutanese government’s bold initiative to double the nation’s Gross Domestic Product (GDP) from USD 2.25 billion to USD 5 billion by 2029 has been met with cautious optimism. While the recognition of entrepreneurs and the private sector as pivotal to this economic transformation is applauded, many stakeholders are questioning how these entities will be effectively integrated into the national growth strategy.
Central to the government’s Economic Stimulus Plan (ESP) is the expectation that a significant injection of funds will invigorate the stagnant economy and create numerous job opportunities. However, industry insiders argue that financial support alone will not suffice to achieve the lofty GDP targets. “It’s not just about the money,” says Tashi Dorji, a local entrepreneur. “We need policies that foster a conducive environment for businesses of all sizes to thrive.”
A major concern among business owners is the lack of favorable policies that can stimulate growth and innovation. Despite the government’s emphasis on entrepreneurship, many face formidable barriers, including cumbersome bureaucratic procedures and restrictive regulations. “The red tape is the biggest hurdle,” explains Sonam Wangchuk, founder of a local dairy startup. “Even with access to finance, navigating the policy landscape is daunting and discourages many potential entrepreneurs.”
The current market dynamics also pose significant challenges for local businesses. Imported goods often dominate the market due to their lower prices, making it difficult for locally produced items to compete. This is particularly evident in the food sector, where homemade products like ice cream, yogurt, and cheese struggle to match the affordability of imports. “Our production costs are higher, and without supportive policies, it’s hard to compete with cheaper alternatives from abroad,” Wangchuk adds.
Despite these challenges, initiatives like the Druk Tshongrig Gatoen event, which aims to foster knowledge-driven entrepreneurship, offer a glimmer of hope. This platform serves as a nexus for innovation, social responsibility, and alignment with Bhutan’s developmental goals. “Events like these are crucial for recognizing and nurturing entrepreneurial talent,” says Karma Choden, a participant in the recent Gatoen event. “They provide the necessary support and networking opportunities that can drive real change.”
Entrepreneurs are calling for a comprehensive approach that goes beyond financial assistance. They seek a streamlined business environment with reduced bureaucratic obstacles, policies that prioritize local production, and a commitment from decision-makers to honor their public statements with tangible support. “We need ease of doing business and policies that genuinely support local initiatives,” Dorji emphasizes. “If the government is serious about doubling the GDP, it must address these fundamental issues.”
One poignant example of the need for policy intervention is the case of a dairy farmer who ventured into ice cream production. He was disheartened to find that his locally sourced ice creams were outpriced by cheaper imports from South India. “With the right policy support, I could offer better and healthier options for children here,” he states. “But without it, sustaining the business becomes nearly impossible.”
As Bhutan strides towards its economic goals, the role of entrepreneurs and the private sector remains critical. Ensuring their success requires more than just financial backing—it demands a supportive policy framework, reduced bureaucratic barriers, and a genuine commitment to fostering local innovation. Only then can Bhutan hope to achieve its ambitious vision of economic growth and prosperity for all its citizens.
