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Economy of Bhutan

Bhutan being small country with small population, people still live with agriculture and livestock as main source of income. More than 70 percent of population depends upon these two sectors for their livelihood. Peasants now cultivate cash crops; rice, potato, apple, orange, cardamom, mushroom, lemon-grass oil and Cordycep sinesis. The good quality these crops are mainly exported to India and Bangladesh.
With rich in natural environment and deep gorges, Bhutan has potential to produce about 30,000 megawatts of hydro-power but as of now only 3000 megawatt has been exploited. Many hydro-power plants were funded by the Indian government; India is the main consumer of electricity. Therefore, electricity is the main source of revenue to the Bhutanese government.
Tourism and airlines are two main hard currency earners in the country. Nevertheless, many industries and mines are coming up for export. Some of the industrial and mined stones are; dolomite, gypsum, slate, limestone, ferro-alloys and cements.
UN rated Bhutan as one of the least developed countries in the world and ranked at 131st. Comparing to decades ago, the country has developed drastically in terms of modern technologies. The development of the country was started since 1961 by initiating first Five Year Plan and building of first ever road from Phuntsholing to Thimphu with help from Indian government. Consequent five year plans focused more on agriculture, education and public health.
Comparing with many other Asian and African countries, economic development of Bhutan is doing well. More than 90% of farmers own cultivable land and good quality houses.

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