The Bhutanese Leading the way.
In an era marked by rapid globalization and economic evolution, one factor remains consistent: Cottage and Small Industries (CSI) represent a staggering 95 percent of the Bhutan’s industrial output. The Department of Cottage & Small Industry (DCSI) was established under the Ministry of Economic Affairs (MOEA) in July 2010.
One of the most compelling attributes of CSI industries is their unparalleled ability to generate employment opportunities. By fostering diverse employment opportunities and supporting local businesses, they play a crucial role in narrowing income disparities. Their robust contribution to the Gross Domestic Product (GDP) of nations drives economic prosperity.
However, there are several challenges CSI face, such as limited access to markets and small domestic audiences, limited financial resources for the market, limited opportunities in the market landscape with slow adoption of modern technologies, high logistical costs, raw material scarcity, supply chain complications, heightened competition from foreign imports, workforce retention issues, inadequate incentives, insufficient capital for expansion, stringent standards and certification prerequisites, and the absence of export-focused infrastructure.
These challenges collectively test the resilience and adaptability of CSI enterprises as they strive to make a positive impact.
Currently, CSI faces a daunting financial instability issue while also struggling with a lack of representation in the private sector. Poor connectivity between CSI organizations and government bodies adds to the sector’s challenges.
A survey conducted by the CSI found that there was a need for establishments of similar concepts of CSI markets outside Bhutan, like in the BIMTSEC, SAARC regions, need for similar startup centers in other dzongkhags, startup centers tenure extends to 5 years instead of 2 years, affordable land lease options, improved accessibility, tax or other incentives to encourage startups, imposition of standards and certifications for imported goods, increase taxes on direct competing local products, standardizing local products, certifications etc., regular local product promotion platforms, forums or campaigns.
The CEO of CSI has been going around presenting to political parties for an inclusive policy for the CSI sector. As the economy is currently stagnant, the private sector needs a boost.
The Prime Minister, Opposition Leader and the PDP President have all publicly said that the CSI sector is important for entrepreneurship, employment opportunities and economic development in the country.
As the private sector drives the economy, it is imperative for policies to be private friendly, if the economy is to grow.
The CSI market touches every aspect of society, from job creation to economic independence, and GDP growth. As Bhutan navigates an increasingly complex world, it is important to recognize and appreciate the pivotal role played by these industries.
