Bhutan’s Business Infrastructure Policy and Industrial Parks
Between 2010 and 2018, Bhutan’s economic performance in the real growth of gross domestic product (GDP) was respectable, averaging more than 5 percent a year. This was driven by hydropower, services, and agriculture. However, there is growing press...
| Main Author: | |
|---|---|
| Format: | Policy Note |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/473711564641158995/Bhutan-s-Business-Infrastructure-Policy-and-Industrial-Parks http://hdl.handle.net/10986/32295 |
| Summary: | Between 2010 and 2018, Bhutan’s economic
performance in the real growth of gross domestic product
(GDP) was respectable, averaging more than 5 percent a year.
This was driven by hydropower, services, and agriculture.
However, there is growing pressure to diversify production.
Hydropower development will peak by 2023 and is associated
with widening current account deficits and the accumulation
of public debt. There is a greater need to foster a dynamic
private sector and create employment. In this context,
Bhutan has recently embarked on a strategy to develop a
business infrastructure policy. This is mainly focused on
establishing four industrial parks to jump-start investment
and developing the management arrangements. These industrial
parks would include access to land, infrastructure, and
energy sources and be in the south, near the border with
India. Drawing on the experiences of other countries, the
industrial park policy in Bhutan is based on an overall
umbrella of rules on purpose, coverage, policy
considerations, existing infrastructure, regulatory and
legal framework, and enactment and implementation of
legislation. The industries in the parks are envisaged to
include wood-based, agriculture-based, and metal-based industries. |
|---|