The Bhutanese Leading the way.
The Ministry of Industry, Commerce and Employment officially launched the Industrial Development Roadmap (IDR) 2025 on 8th August, marking a step toward transforming the country’s industrial sector.
IDR provides a strategic framework aimed at creating a dynamic, inclusive, and globally competitive industrial landscape.
The roadmap addresses longstanding challenges in the sector, including weak diversification, limited value addition, and heavy reliance on imports. Despite the industrial sector contributing around 53% to the nation’s GDP, over 95% of industries are small-scale or cottage-based, with nearly 59% non-operational, highlighting issues such as access to finance, market constraints, and regulatory hurdles. Youth unemployment stands at 17.7%, emphasizing the urgent need for job creation and skill development.
Looking ahead to 2035, the IDR sets ambitious targets: Generating more than 65,000 new industrial jobs, with 40% aimed at youth, women, and rural populations; increasing manufacturing’s GDP share from 8% to 12%; boosting the industrial sector’s overall contribution to 60% of GDP; mobilizing Nu 300 billion in private and foreign investments, and doubling the value of industrial exports while reducing import dependence.
The roadmap identifies ten high-potential sectors with significant growth and sustainability prospects, including agro-industries, creative industries, data center services, education, forestry-based industries, ICT, medical and wellness technologies, mineral-based industries, renewable energy, and tourism. Tailored interventions across policy, infrastructure, finance, skills, technology, and market access are planned for each sector.
Strategically, IDR focuses on strengthening the national industrial ecosystem through reforms in licensing, regulation, finance, and digital infrastructure, alongside sector-specific action plans that promote growth, innovation, and investment while advancing climate resilience and social equity. Key initiatives include establishing an Industrial Development Finance Facility offering concessional loans and credit guarantees, developing smart industrial parks and regional clusters, promoting green manufacturing and circular economy models, reforming state-owned enterprises to encourage private sector participation, digitizing business approvals, and expanding technical and vocational education and training (TVET) to align fully with industry needs by 2032.
The roadmap was developed over four months by a 13-member task force, drawing on extensive consultations with over 80 stakeholders from government, private sector, academia, and civil society.
Designed as a flexible, living document, IDR will be periodically reviewed and adapted to respond to changing national priorities and global developments, positioning Bhutan’s industrial sector for sustainable, inclusive growth in the years to come.
