The Bhutanese Leading the way.
According to the State of the Nation (SOTN) report presented by the Prime Minister Dasho Tshering Tobgay, the government will mobilize Foreign Direct Investment (FDI) worth Nu 3.5 billion (bn) in the financial year (FY) 2026-27 by targeting high-potential sectors, such as clean technologies, creative industries, information technology and IT-enabled services, renewable energy, wellness, and agro-processing.
As part of efforts to strengthen entrepreneurship and innovation, 25 new startups will be created, while 85 early-stage startup businesses will be accelerated during the fiscal year.
To promote regional parity and reduce the concentration of economic activity in the western region, 100 new industries will be established outside Thimphu and Chukha.
In the tourism sector, five new tourism packages will be developed, including nature-based, pilgrimage, wildlife, and winter tourism packages. The government will also launch the Red Panda tourism flagship programme at Tergola in Haa and establish a Red Panda Rehabilitation Center.
The government will also target a 10 percent increase in exports of gypsum, dolomite, and construction materials through value addition.
In the creative industries sector, two formal payment partnerships with major digital platforms will be established, targeting revenue generation of USD 90,000. Construction of two cinema halls at Bajo and Samdrup Jongkhar will also be completed.
The Economic Stimulus Program (ESP) will continue in FY 2026-27 with a total approved budget of Nu 3.39 bn.
Under the program, Nu 1.09 bn has been allocated for the Business Reinvigoration Fund and hotel sector interest subsidy support through the Royal Monetary Authority. Another Nu 300 mn has been earmarked for the Education Loan Scheme through Bhutan Development Bank Limited.
Agriculture and livestock development under the Price Guarantee Scheme will receive Nu 235.112 mn, while Nu 795.534 mn has been allocated for the Crop and Livestock Insurance Scheme.
Tourism development will receive Nu 471.424 mn, while Nu 305.637 mn has been allocated for the Startup and Incubation Centre. Creative industry development has been allocated Nu 22.400 mn, and Nu 169.650 mn has been earmarked for youth employment, education, and training.
To strengthen food self-sufficiency, 500 farmers will be provided access to the National Crop and Livestock Insurance Scheme. A total of 782 kilometres of chain-link fencing will be constructed, and 800 acres of agricultural land will be developed in line with agriculture land development guidelines.
