In an exclusive interview, Prime Minister Lotay Tshering unveiled a strategic initiative aimed at fostering closer economic collaboration between Bhutan and global companies operating in India. Prime Minister Tshering expressed the nation’s willingness to provide investment incentives to international corporations that extend their business operations into Bhutan.
In the midst of a wave of investments flowing into India, Tshering emphasized the potential for Bhutan to engage not only with the Indian government but also with multinational corporations with investments in India. He outlined the unique advantages that Bhutan could offer these companies, such as favorable taxation policies, access to skilled manpower, and specialized expertise. By encouraging companies to establish chapters in Bhutan, the Prime Minister aspires to forge a path that would mutually benefit businesses and the Bhutanese economy.
When questioned about the possibility of Bhutan becoming a manufacturing hub, Tshering responded affirmatively but noted that the nation’s approach would deviate from conventional models. Instead of pursuing mass production, Bhutan aims to focus on key, highly valuable, low-volume businesses and manufacturing sectors. These areas, including digital and IT services, science, technology, and financial services, are expected to play a crucial role in Bhutan’s economic diversification.
The Bhutanese economy has long been reliant on tourism, although the imposition of a substantial sustainable development fee following the pandemic hindered the return of tourists to the picturesque nation. To stimulate tourism, the Bhutan government recently announced a 50% reduction in the fee, signaling its commitment to welcoming visitors. Notably, Indian tourists are required to pay Rs 1,200 per person per day.
Trade between India and Bhutan has been a cornerstone of their bilateral relationship. Tshering highlighted the complementary nature of Bhutan’s energy initiatives, particularly in hydro and solar energy, with India’s infrastructure development plans. He underscored the potential for Bhutan to contribute significantly to India’s energy needs, given its focus on sustainable energy solutions.
Addressing a long-standing infrastructure ambition, Tshering confirmed that the rail link connecting India and Bhutan is on the horizon. An agreement for multiple rail links was signed in 2005, with one of them connecting Kohrajhar in Assam to Gelephu in Bhutan. The Prime Minister disclosed that progress had been made through surveys and expert consultations, with the Gelephu-Kokrajhar project gaining traction. While no specific deadline was set, Tshering acknowledged that the project’s urgency is recognized by both nations.
Reflecting on Bhutan’s unique geopolitical position between India and China, Tshering emphasized that Bhutan cannot afford to take sides in the ongoing disputes between the two neighbors. He highlighted the economic advantages derived from India’s goodwill gestures and the symbiotic trade relationship. Although Bhutan also maintains economic ties with China, its strong connection with India shapes its economic landscape significantly.
In conclusion, Prime Minister Lotay Tshering’s interview underscores Bhutan’s evolving economic strategy and its ambition to leverage its proximity to India for mutual growth. By welcoming global companies with Indian investments and exploring key sectors, Bhutan aims to carve out a distinctive economic trajectory that complements both its own interests and those of its neighbors.
