🇧🇹 Bhutan

Bhutan is a landlocked constitutional monarchy in South Asia, home to 734,000 people, with its capital at Thimphu.

Overview

Overview

Bhutan at a glance

In 1865, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land to British India. Under British influence, a monarchy was set up in 1907; three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs, and Bhutan allowed Britain to direct its foreign affairs. This role was assumed by independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned to Bhutan the areas annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. …

Population
733.6K
#165 World#6 South Asia
GDP (PPP)
$5.2B
#170 World#6 South Asia
GDP per Capita
$7K
#143 World#2 South Asia
Area
38.4Kkm²
#136 World#6 South Asia
National Infrastructure

🇧🇹 Bhutan’s critical and strategic infrastructure, sustaining output, agility and endurance

The National Infrastructure Index maps the physical assets national life runs on — power stations and grids, water systems, ports, railways and airports, data networks, payment systems and launch sites. Each asset is placed in a Strategic Infrastructure capability group, so it can be read against the ratings in the National Capability index above.

Assets are chosen for how much of the economy and state depends on them and how hard they would be to replace. Each card records what the asset is, the category it belongs to, what it does and where it is.

Placeholder

Example assets. These twenty cards are modelled on China's most critical infrastructure and show on every nation page until each nation's own assets are mapped.

EnergyWater, Sanitation & WasteTransportCommunications & DigitalFinancialSpace, Aerospace & DefenceResourceAgriculture & FoodAdvanced Manufacturing

Critical infrastructure assetsBack to top ↑

Three Gorges Dam

Energy

The world's largest hydropower station by installed capacity, at 22.5 GW, and the main flood-control structure on the Yangtze.

Yichang, Hubei

Baihetan Hydropower Station

Energy

A 16 GW dam on the Jinsha River, built around sixteen 1 GW turbines, the largest single units in service.

Qiaojia, Yunnan

Changji–Guquan UHVDC Line

Energy

A ±1,100 kV direct-current line carrying 12 GW more than 3,000 km from Xinjiang's power bases to the eastern grid.

Changji, Xinjiang

Daya Bay Nuclear Power Station

Energy

China's first large commercial nuclear plant, in service since 1994, with much of its output sold to Hong Kong.

Shenzhen, Guangdong

South–North Water Transfer, Middle Route

Water, Sanitation & Waste

A canal carrying Yangtze basin water more than 1,400 km north from the Danjiangkou Reservoir to Beijing and Tianjin.

Danjiangkou, Hubei

Beijing–Shanghai High-Speed Railway

Transport

The 1,318 km trunk line between the two largest cities, opened in 2011 and one of the busiest high-speed routes in the world.

Beijing

Port of Shanghai

Transport

The world's busiest container port since 2010, including the automated Yangshan deep-water terminals.

Shanghai

Ningbo-Zhoushan Port

Transport

The world's largest port by cargo tonnage, handling iron ore, crude oil and coal for the eastern industrial belt.

Ningbo, Zhejiang

Beijing Daxing International Airport

Transport

The capital's second international hub, opened in 2019 around one of the largest single terminal buildings in the world.

Beijing

Hong Kong–Zhuhai–Macao Bridge

Transport

A 55 km bridge and undersea tunnel system linking the western and eastern shores of the Pearl River Delta, opened in 2018.

Zhuhai, Guangdong

Qinghai–Tibet Railway

Transport

The 1,956 km line from Xining to Lhasa, crossing the Tanggula Pass at 5,072 m, the highest railway in the world.

Lhasa, Tibet

Gui'an National Computing Hub

Communications & Digital

One of eight national data centre hubs under the East Data, West Computing programme, hosting major cloud providers.

Guiyang, Guizhou

Beijing–Shanghai Quantum Backbone

Communications & Digital

A 2,000 km quantum key distribution trunk line through Jinan and Hefei, completed in 2017 for secure government and bank links.

Hefei, Anhui

Cross-Border Interbank Payment System

Financial

CIPS clears and settles cross-border payments in renminbi, launched in 2015 to extend the currency's international reach.

Shanghai

Wenchang Spacecraft Launch Site

Space, Aerospace & Defence

The coastal launch site for Long March 5 heavy-lift rockets, used for the Tiangong station modules and lunar and Mars missions.

Wenchang, Hainan

Jiuquan Satellite Launch Center

Space, Aerospace & Defence

China's first launch site, founded in 1958 in the Gobi Desert, and the base for every crewed Shenzhou mission.

Jiuquan, Gansu

BeiDou Navigation Satellite System

Space, Aerospace & Defence

The national satellite navigation system, providing global positioning and timing since 2020 from its Beijing control segment.

Beijing

Bayan Obo Mining District

Resource

The world's largest known rare-earth deposit and the core of China's rare-earth mining and refining supply chain.

Baotou, Inner Mongolia

Dujiangyan Irrigation System

Agriculture & Food

A weir and channel system built around 256 BC that still irrigates much of the Chengdu Plain's farmland.

Dujiangyan, Sichuan

Yangtze Memory Technologies Fab

Advanced Manufacturing

China's leading maker of 3D NAND flash memory, central to the drive for a domestic semiconductor supply.

Wuhan, Hubei
National Developments

🇧🇹 Bhutan’s major milestones and key developments

The National Development Index tracks the events that move a nation's capability — policy decisions, technological milestones, economic turns and external shocks — and places each one on the record with the date it happened and what followed from it. It is the narrative counterpart to the indices: where a rating says where Bhutan stands, the index says how it arrived there.

Recent developments cover the current cycle, close enough that their consequences are still unfolding. Historical developments are the inflection points behind the present position — the decisions and events a reader needs in order to read the ratings above in context.

GeopoliticalGovernanceSecurityTechnologyEconomyEnvironmentSociety

Historical Developments

7th centuryTibetan king Songtsen Gampo extended the Tibetan Empire into Bhutan and introduced Buddhism 1426 years ago

The Buddhist convert Songtsen Gampo, reigning 627–649, pushed Tibetan authority into Sikkim and Bhutan and ordered the building of Jambay Lhakhang in Bumthang and Kyichu Lhakhang in the Paro Valley. These temples mark the arrival of the faith that would come to define Bhutanese identity, law and statecraft.

746King Sindhu Rāja presided over the earnest propagation of Buddhism from Bumthang 1280 years ago

An exiled Indian king established a government at Chakhar Gutho Palace in Bumthang, and Guru Padmasambhava is recorded as visiting the district in the same year. The episode is treated as the decisive planting of Buddhism in the Bhutanese valleys.

16th centuryThe Drukpa Lineage achieved ascendancy over rival Buddhist subsects 526 years ago

After the decline of the Yuan dynasty in the fourteenth century, Buddhist subsects patronised by Mongol warlords competed for political and religious supremacy in Bhutan. By the sixteenth century the Drukpa Lineage had prevailed, giving the country the sectarian identity behind its name Druk yul.

1616Zhabdrung Ngawang Namgyal arrived from Tibet and began the unification of Bhutan 410 years ago

The Tibetan lama and military leader Zhabdrung Ngawang Namgyal, who had fled religious persecution in Tibet, arrived in 1616 and brought the rival valleys and fiefdoms under a single state. He established a dual system of temporal and spiritual governance, built a network of dzongs and defeated several Tibetan invasions, and issued the Tsa Yig legal code to subordinate local lords. The dzongs remain centres of religion and district administration, and the Tsa Yig is the root of the Bhutanese legal system.

1627Portuguese Jesuits Estêvão Cacella and João Cabral became the first recorded Europeans to visit Bhutan 399 years ago

En route to Tibet the pair met Zhabdrung Ngawang Namgyal, presenting firearms, gunpowder and a telescope and offering assistance against Tibet, which he declined. Cacella's long letter from Chagri Monastery, and the Relação, provide the earliest Western record of the country and a rare contemporary account of the Zhabdrung.

1651Bhutan's ruling establishment concealed Ngawang Namgyal's death for fifty-four years 375 years ago

When the unifier died, his passing was kept secret to preserve the authority of the newly consolidated state. After a period of consolidation the country nonetheless lapsed into internal conflict.

1711Bhutan went to war against the Raja of Koch Bihar 315 years ago

The campaign in the southern kingdom extended Bhutanese influence over Koch Bihar. In the chaos that followed, Tibetan forces attacked Bhutan unsuccessfully in 1714.

1772–1774The British East India Company ousted Bhutanese forces from Koch Bihar and invaded Bhutan 254 years ago

After the Maharaja of Koch Bihar appealed for help in 1772, the Company expelled the Bhutanese and attacked Bhutan itself in 1774. The resulting peace treaty obliged Bhutan to retreat to its pre-1730 borders and opened a century of border friction with British India.

1865Bhutan ceded the Duars region to British India after the Duar War 161 years ago

Confrontation with British India over control of the Bengal Duars ended in Bhutanese defeat after a five-month war, despite some Bhutanese battlefield successes. Under the Treaty of Sinchula of 11 November 1865 Bhutan surrendered the Duars — about a fifth of its territory — in exchange for an annual subsidy of ₹50,000, ending hostilities but permanently reducing the kingdom's lowland territory.

1882–85Ugyen Wangchuck defeated his rivals and reunited the country after civil war 144 years ago

Power struggles between the valleys of Paro and Tongsa during the 1870s produced civil war. From his base as penlop of Trongsa, Ugyen Wangchuck subdued his enemies through a series of civil wars and rebellions, establishing unrivalled national authority.

December 1907Ugyen Wangchuck was elected Bhutan's first hereditary King 119 years ago

On 17 December 1907 the Lhengye Tshog — an assembly of leading Buddhist monks, government officials and heads of important families — unanimously elected Ugyen Wangchuck as hereditary monarch, following a firm petition from Gongzim Ugyen Dorji, and the British government promptly recognised the new monarchy. The choice ended the earlier dual system of temporal and spiritual rulers and founded the Wangchuck dynasty, which remains the axis of the Bhutanese state and of its later democratic transition.

1910Bhutan and British India signed the Treaty of Punakha 116 years ago

Bhutan and British India signed the Treaty of Punakha, a subsidiary alliance under which Britain undertook not to interfere in Bhutan's internal affairs in exchange for control of and guidance on its external relations plus an increased annual subsidy, superseding the 1865 Treaty of Sinchula. Bhutan was in effect treated as an Indian princely state and de facto protectorate, though in practice the arrangement had little effect given Bhutan's reticence and did not disturb traditional relations with Tibet; it shaped Bhutanese foreign policy until 1949.

1947Bhutan was among the first states to recognise India's independence 79 years ago

When the Dominion of India gained independence from the United Kingdom on 15 August 1947, Bhutan moved swiftly to recognise it. The gesture set the tone for the close bilateral relationship that replaced British paramountcy.

August 1949India and Bhutan signed a formal accord on defence and foreign relations 77 years ago

Concluded on 8 August 1949 at Darjeeling in the aftermath of the Chinese Communist Revolution, the Indo-Bhutanese friendship treaty replicated the 1910 arrangement by giving India a consultative role in Bhutan's foreign relations while both states recognised each other's sovereignty. It returned to Bhutan the border areas annexed by the British, formalised the annual subsidies the country received and defined India's responsibilities in Bhutan's defence, with a related 1948 treaty providing for Indian assistance with army training. Independent India thereby assumed Britain's advisory role, anchoring Bhutan's external alignment for six decades.

1953King Jigme Dorji Wangchuck established Bhutan's first National Assembly 73 years ago

King Jigme Dorji Wangchuck created Bhutan's first legislature, the 130-member Tshogdu or National Assembly, giving elected and appointed members a formal role in law-making for the first time as a step towards more democratic governance. It accompanied wider reforms of the period, including the abolition of serfdom and redistribution of land, and was followed by a Royal Advisory Council in 1965 and a Cabinet in 1968.

1960Bhutan closed its border with China, ending Tibet trade 66 years ago

Trade relations with the Tibet Autonomous Region were severed after an influx of refugees prompted the closure. The move redirected Bhutan's commerce decisively southwards towards India.

1961The government introduced secular school education and appointed a director of education 65 years ago

Education in Bhutan had historically been monastic; the first five-year plan created a central education authority in 1961 and an organised modern school system with free and universal primary education. Literacy later climbed to 98 per cent among young people and 72 per cent overall.

1964The government abandoned Hindi in favour of promoting Dzongkha 62 years ago

Hindi had been adopted to help start formal secular education, but was dropped as part of a policy from the late 1960s of modernising and elevating the Dzongkha language. The shift began a long programme of linguistic centralisation.

1971Bhutan joined the United Nations as its 128th member state 55 years ago

After three years of observer status Bhutan took full United Nations membership on 21 September 1971 as the organisation's 128th member state, marking its emergence from decades of self-imposed isolation and giving the kingdom a formal voice in international affairs alongside its traditional ties with India. In the same year it became the first country to recognise the independence of Bangladesh.

1972King Jigme Singye Wangchuck introduced Gross National Happiness as Bhutan's guiding development philosophy 54 years ago

Speaking shortly after his coronation, he set collective wellbeing above economic output as the measure of national progress, a principle later written into the 2008 constitution and tracked through a national GNH index and survey.

July 1972Jigme Singye Wangchuck ascended the throne aged sixteen 54 years ago

He succeeded on the death of his father Jigme Dorji Wangchuck. His long reign brought the Gross National Happiness philosophy, media liberalisation and ultimately the surrender of absolute royal power.

1977Bhutan's government enacted legislation affecting the Lhotshampa minority 49 years ago

Laws passed in 1977 and again in 1985 tightened the position of the Nepali-speaking Lhotshampa population of southern Bhutan. They laid the legal groundwork for the denationalisations of the following decade.

1985Bhutan became a founding member of SAARC 41 years ago

Membership of the South Asian Association for Regional Cooperation gave the small kingdom a permanent seat at regional diplomacy. Bhutan is now a member of some 150 international organisations, including the World Bank, the IMF and the Group of 77.

1987–92The government imposed the Driglam Namzhag dress and etiquette code under 'one nation, one people' 39 years ago

The sixth Five-Year Plan required all citizens to wear the gho and the kira and enforced traditional Drukpa etiquette. The policy asserted the cultural dominance of the Drukpa majority and inflamed grievances among the Lhotshampa.

1988Bhutanese authorities conducted a special census in southern Bhutan 38 years ago

Families had to produce a tax receipt from precisely 1958 or a certificate of origin to prove citizenship, and previously issued citizenship cards were rejected. The census reported over 100,000 alleged illegal immigrants and became the instrument of mass denationalisation and eviction.

1990–1992The Bhutanese army and police expelled between 80,000 and 100,000 Lhotshampas 36 years ago

Protests for civil and cultural rights across southern Bhutan were met with arrests without trial, and security forces carried out forcible deportations amid accusations of widespread violence, torture, rape and killing. The evicted became refugees in camps in eastern Nepal, numbering some 107,000 by 2008, and the country lost a large share of its population and international goodwill.

1990–2010Bhutan achieved a sharp fall in maternal mortality 36 years ago

Improved reproductive health services cut the maternal mortality rate from 1,000 to 180 over two decades, while contraceptive use rose from under a third in 2003 to two thirds in 2010. Life expectancy reached about 70 years, with diseases such as leprosy and polio eradicated.

March 1990The government discontinued Nepali-language teaching in southern schools 36 years ago

At the start of the school year all Nepali curricular materials were withdrawn from Bhutanese schools in favour of Dzongkha. The measure was central to the Bhutanisation programme and to Lhotshampa alienation.

1991Some 30,000 Bhutanese refugees remained housed in UN camps in Nepal 35 years ago

Ethnic Nepali residents who left or were expelled from Bhutan in the early 1990s were housed in two UN refugee camps in eastern Nepal. The disposition of roughly 30,000 remaining refugees is still unresolved, though many others have been resettled in third countries.

1992Bhutan signed and later ratified the Rio Convention on Biological Diversity 34 years ago

Bhutan signed on 11 June 1992 and became a party on 25 August 1995, subsequently producing a National Biodiversity Strategy and Action Plan with two revisions, the latest received in 2010. The commitments underpin the country's standing as a conservation exemplar in the Eastern Himalayan biodiversity hotspot.

1999Bhutan lifted its ban on television and the internet 27 years ago

Bhutan, the last country in the world to permit broadcast television, lifted its ban on television and the internet, with King Jigme Singye Wangchuck approving cable services and internet access as part of a wider modernisation of the economy and public administration. The King framed the move as critical to modernisation and to Gross National Happiness, while warning that misuse of the technology could erode traditional values.

2004The government created the National Commission for Women and Children 22 years ago

The body was established as part of steps towards gender equality alongside greater enrolment of girls in school. Bhutan went on to elect its first female Dzongda in 2012 and appoint its first female minister in 2013, with women's representation rising 68 per cent between 2011 and 2016.

January 2005Bhutan and India agreed to build a rail link into southern Bhutan 21 years ago

The accord provides for an 18-kilometre broad gauge line between Hasimara in West Bengal and Gelephu, connecting a country that has no railways to the Indian network. Road widening from Trashigang to Dochula became a parallel priority from 2014.

March 2005King Jigme Singye Wangchuck unveiled a draft constitution introducing major democratic reforms 21 years ago

King Jigme Singye Wangchuck unveiled the government's draft constitution, which introduced major democratic reforms and provided for a parliamentary system with an elected National Assembly and a National Council, pledging to hold a national referendum for its approval. It set Bhutan on the path from absolute monarchy to the 2008 constitutional settlement.

Recent Developments

August 2026The Kingdom of Bhutan established diplomatic relations with the Hashemite Kingdom of Jordan this month

Ambassadors of the two countries signed a joint communiqué in New York on 3 August 2026, bringing the number of states with which Bhutan holds formal ties to 62 plus the European Union.

Brunei Darussalam had established diplomatic relations with Bhutan
July 2026The Election Commission of Bhutan held the fourth Thromde local government elections last month

Voting for the Thromde Tshogdes of Thimphu and Phuentsholing took place on 15 July 2026 among 10,309 registered voters. Turnout was about 34 per cent, down from 59.46 per cent in 2021 and 37.25 per cent in 2016.

July 2026Bhutan's tourism sector welcomed almost 150,000 visitors in its strongest first half on record last month

Arrivals for January to June 2026 reached 149,141, up 48 per cent on the same period of 2025, with new hotels opening in Paro and Gangtey. India supplied about 72 per cent of visitors, the largest share of any market.

June 2026A magnitude-5.6 earthquake struck near Punakha, damaging hundreds of homes 2 months ago

The quake near Punakha damaged more than 400 households across the Mongar, Punakha and Wangdue Phodrang areas on 7 June 2026 and triggered rockfalls in Trashigang. Tremors were felt across north-east India, Bangladesh and Nepal, though no deaths were reported.

June 2026Prime Minister Tshering Tobgay presented the government's third annual State of the Nation report 2 months ago

Addressing a joint sitting of parliament on 16 June 2026, he named overseas migration the government's most pressing challenge, noting that more than 71,000 Bhutanese were working abroad. The report also set a target of 25,000 megawatts of hydropower capacity by 2040.

May 2026Druk Holding and Investments continued drawing down the state's Bitcoin reserves, prompting a dispute over the total sold 3 months ago

Blockchain trackers estimated that the fund had sold around 70 per cent of its bitcoin holdings, worth over 100 million US dollars, since the start of 2025. Officials disputed widely reported estimates of a billion-dollar drawdown, saying they did not recognise the figures.

April 2026Bhutanese and Chinese officials held the 15th expert group meeting on the Bhutan-China boundary 4 months ago

Talks in Beijing from 30 March to 1 April 2026 reviewed progress on the three-step roadmap agreed in 2020, and a joint technical team discussed demarcation of undisputed sections. Both sides described the discussions as candid and constructive.

April 2026The World Bank forecast GDP growth of 7.1 per cent for Bhutan's 2025/26 fiscal year 4 months ago

Its Bhutan Development Update, published on 9 April 2026, attributed the acceleration to the full commissioning of the Punatsangchhu-II hydropower plant and continued construction of the Dorjilung and Khorlochhu projects. It forecast growth of 6.4 per cent the following year.

November 2025Indian Prime Minister Narendra Modi made a state visit to Bhutan and inaugurated the Punatsangchhu-II hydropower plant 9 months ago

During the two-day visit on 11 and 12 November 2025, India pledged a 4,000 crore rupee credit line and a 1,000 crore rupee contribution to Bhutan's 13th Five-Year Plan. The two governments also agreed to advance rail links to serve the planned Gelephu Mindfulness City.

October 2025Bhutan established diplomatic relations with Qatar 1 year ago

Relations were formalised on 16 October 2025, the most recent addition to a list of 56 partner states. Bhutan's diplomatic network remains deliberately small.

October 2025Flash floods knocked out five hydropower plants across western Bhutan 10 months ago

Torrential rain on 4 and 5 October 2025 forced five hydropower plants offline and caused a technical failure at the Tala dam that sent the Wangchhu river over its banks. Indian Army units helped rescue stranded families and workers near the Amochu river.

January 2024Tshering Tobgay returned as Prime Minister after the People's Democratic Party won 30 seats 2 years ago

The PDP's victory in the 2024 election brought Tobgay back to office on 28 January 2024. Bhutan was classified as an electoral democracy for 2024 by the V-Dem Regimes of the World index.

December 2023The King announced the Gelephu Mindfulness City special economic zone 3 years ago

Declared on 17 December 2023, the zone is intended as an economic and financial hub modelled on Dubai and Singapore, with a new international airport, an extension of the Indian rail network and its own gold-backed currency. It is governed by a Singaporean chief executive and a board whose members, apart from the King, are all non-Bhutanese.

2023Bhutan graduated from the United Nations' least developed country category 3 years ago

The graduation took effect on 13 December 2023, recognising sustained gains in income, health and education, and made Bhutan the seventh country to graduate from the category. A smooth transition strategy was adopted to manage the phasing out of trade and aid preferences.

2022The government dissolved the Gross National Happiness commission 4 years ago

The framework of assessing public policy through GNH was abandoned after businesses and industry lobbied that its criteria were too constraining and pressed for GDP as the measure of national success. The move reversed decades of Bhutan's distinctive development philosophy.

2021China signed a memorandum of understanding to expedite border talks with Bhutan 5 years ago

After more than thirty-five years of negotiation over the disputed frontier, the two sides agreed a mechanism to speed the process. Around 269 square kilometres remain contested, and the first bilateral agreement between the countries dated only from 1998.

2020sBhutanese citizens left in a mass exodus of young people after the pandemic 6 years ago

At least 50,000 people, more than six per cent of the population, emigrated in the years following COVID-19. The outflow threatens the labour force of a country of under 800,000.

2020Bhutan suffered a 10 per cent economic contraction during the COVID-19 pandemic 6 years ago

Closure to international travel devastated the tourism industry, a mainstay employing 21,000 people. By July 2021 Bhutan had vaccinated 90 per cent of its population with two doses of AstraZeneca, and it reopened to tourists in September 2022, though arrivals had not recovered by 2025.

2020Bhutan decriminalised homosexuality 6 years ago

Parliament removed criminal penalties for same-sex relations. The reform aligned the country's legal code with wider human rights expectations.

April 2019Bhutan enforced a national plastic bag ban 7 years ago

From 1 April 2019 plastic bags were replaced by alternatives made of jute and other biodegradable materials. The measure extended a record of environmental regulation that also included promoting electric cars, a tenth of the fleet by 2014.

2019Druk Holding and Investments began mining bitcoin with green hydropower 7 years ago

The state holding company started accumulating bitcoin using surplus hydroelectricity, and by 15 November 2024 Bhutan held around 12,206 BTC, worth over US$1 billion. A World Bank report put investment in crypto mining at US$539 million between July 2021 and June 2023, with capacity targeted at 600 megawatts in partnership with Bitdeer.

2018Druk Nyamrup Tshogpa won the 2018 National Assembly election 8 years ago

The party took the largest number of seats, bringing Lotay Tshering to the premiership and entering government for the first time. It followed the People's Democratic Party administration of Tshering Tobgay from 2013 to 2018.

2013The government announced the aspiration to become the first fully organic farming nation 13 years ago

The pledge fitted a wider profile of progressive environmental policy that led the head of the UNFCCC to describe Bhutan as a role model. The country's forests absorb over four million tonnes of carbon dioxide a year against emissions of 2.2 million tonnes.

2013Bhutan achieved a peaceful turnover of power in parliamentary elections 13 years ago

Parliamentary elections in 2013 routed the incumbent party and produced Bhutan's first democratic transfer of power between parties. The peaceful handover consolidated the young democracy established only five years earlier.

May 2012The government launched the Thimphu TechPark 14 years ago

The facility opened in the capital as a base for information technology enterprise. It marked an early attempt to diversify an economy dominated by hydropower and agriculture.

January 2011Bhutan and India brought the revised friendship treaty into force 15 years ago

Substantially revised in February 2007, the treaty took effect on 1 January 2011, clarifying Bhutan's full control of its foreign relations, independence and sovereignty. It ended a century of Indian and previously British suzerainty over Bhutanese external affairs.

2010The government banned public smoking under the Tobacco Control Act 2010 16 years ago

Smoking in public and the sale of tobacco were made illegal, with violators fined the equivalent of a month's salary. The ban was reversed by the Tobacco Control Act 2021 to permit imports and sales, curbing cross-border smuggling identified as a leading COVID-19 vector.

2008Bhutan and India signed a free trade accord 18 years ago

The agreement allowed Bhutanese imports and exports from third markets to transit India without tariffs. It eased the landlocked kingdom's access to world markets through its principal partner.

2008Bhutan adopted a written constitution and held its first democratic elections 18 years ago

The Fourth King having announced the shift to constitutional monarchy, Bhutan held National Council elections in December 2007 and National Assembly elections on 24 March 2008, producing Jigme Thinley as Prime Minister. The 2008 Constitution, formally adopted in July, established a parliamentary government with an elected National Assembly and a National Council, and on 6 November 2008 the 28-year-old Jigme Khesar Namgyel Wangchuck was crowned, completing the transition from absolute to constitutional monarchy.

February 2007India and Bhutan renegotiated their friendship treaty 19 years ago

In early 2007 the two countries revised the 1949 treaty, eliminating the clause stating that Bhutan would be "guided by" India in conducting its foreign policy. Thimphu nonetheless continues to coordinate its foreign relations closely with New Delhi.

2007Bhutan recorded the second-fastest-growing economy in the world 19 years ago

Annual growth reached 22.4 per cent, following eight per cent in 2005 and fourteen per cent in 2006. Per capita income rose from US$2,420 in 2012 to US$4,347.1 in 2024.

December 2006King Jigme Singye Wangchuck abdicated the throne in favour of his son 20 years ago

Having announced in December 2005 that he would step down in 2008, King Jigme Singye Wangchuck declared on 9 December 2006 that he would abdicate immediately in favour of his son, Jigme Khesar Namgyel Wangchuck, so as to give the young monarch experience as head of state before the planned democratic transition. He had already transferred most administrative powers to the Council of Cabinet Ministers and allowed for royal impeachment by a two-thirds majority of the National Assembly.

November 2005Chinese soldiers crossed into disputed territory and built roads and bridges 21 years ago

The incursion of 13 November 2005 highlighted the unresolved boundary with China, of which roughly 269 square kilometres remain under discussion. Border talks have run for more than thirty-five years without settlement.

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Historical Context

🇧🇹 Bhutan’s understanding the origins and evolution of the modern nation

Capital
Thimphu
Government
constitutional monarchy
Independence·1907
1.9K
Population
733.6K
GDP (PPP)
—

BackgroundBack to top ↑

In 1865, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land to British India. Under British influence, a monarchy was set up in 1907; three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs, and Bhutan allowed Britain to direct its foreign affairs. This role was assumed by independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned to Bhutan the areas annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. In March 2005, King Jigme Singye WANGCHUCK unveiled the government's draft constitution - which introduced major democratic reforms - and pledged to hold a national referendum for its approval. In December 2006, the King abdicated the throne in favor of his son, Jigme Khesar Namgyel WANGCHUCK, in order to give him experience as head of state before the democratic transition. In early 2007, India and Bhutan renegotiated their treaty, eliminating the clause that stated that Bhutan would be "guided by" India in conducting its foreign policy, although Thimphu continues to coordinate closely with New Delhi. Elections for seating the country's first parliament were completed in March 2008; the king ratified the country's first constitution in July 2008. Bhutan experienced a peaceful turnover of power following parliamentary elections in 2013, which routed the incumbent party. The disposition of some 30,000 Bhutanese refugees - housed in two UN refugee camps in Nepal - remains unresolved.

IndependenceBack to top ↑

1907 (became a unified kingdom under its first hereditary king)

National holidayBack to top ↑

National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)

Geography

🇧🇹 Bhutan’s territory, resources and strategic position

Area
38.4Kkm²
Land Boundaries
1.1Kkm
Coastline
0km
Maritime Claims
none
Land Use
2.5%

Location and areaBack to top ↑

Location

Southern Asia, between China and India

Geographic coordinates

27 30 N, 90 30 E

Map references

Asia

Area
total:38,394 sq km
land:38,394 sq km
water:0 sq km
Area — comparative

about one-half the size of Indiana

Land boundaries
total:1,136 km
border countries:China 477 km, India 659 km
Coastline

0 km (landlocked)

Maritime claims

none (landlocked)

Terrain and resourcesBack to top ↑

Terrain

mostly mountainous with some fertile valleys and savanna

Natural resources

timber, hydropower, gypsum, calcium carbonate

Land use
arable land:2.49%
permanent crops:0.46%
other:97.06% (2011)
Irrigated land

319.1 sq km (2010)

Settlement and hazardsBack to top ↑

Natural hazards

violent storms from the Himalayas are the source of the country's name, which translates as Land of the Thunder Dragon; frequent landslides during the rainy season

Geography note

landlocked; strategic location between China and India; controls several key Himalayan mountain passes

OtherBack to top ↑

Elevation extremes
lowest point:Drangeme Chhu 97 m
highest point:Gangkar Puensum 7,570 m
Total renewable water resources

78 cu km (2011)

Freshwater withdrawal (domestic/industrial/agricultural)
total:0.34 cu km/yr (5%/1%/94%)
per capita:458 cu m/yr (2008)
Environment - current issues

soil erosion; limited access to potable water

Environment - international agreements
party to:Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection
signed, but not ratified:Law of the Sea
Environment

🇧🇹 Bhutan’s environmental conditions, resources and national resilience

Carbon Dioxide Emissions
—
Methane Emissions
—
Particulate Matter Emissions
—
Total Water Withdrawal
—
Waste and Recycling
—

Conditions and issuesBack to top ↑

Climate

varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas

Critical Technology

🇧🇹 Bhutan’s technology frontiers and the pursuit of national advantage

Large-Scale AI Systems
—
Cumulative Launched
—
Space Agency
—
Launch Sites
—
Programme
—

Technology systemsBack to top ↑

GINC data

Capability-group ratings for Critical Technology are part of the GINC National Capability Framework rather than the country factbook. They are published in the National Capability index, and the per-capability detail lives on the capability pages.

Medicine and BioTechBack to top ↑

Clinical research and life-science invention, drawn from the same series that drive the metric pages. Each card opens the full cross-country comparison.

Clinical Trials·2023
2
#104 World
20002024

Space programmeBack to top ↑

🇧🇹Bhutan
Objects Launched into Space
Annual number of objects launched into outer space, 1950–2025. Bhutan is highlighted; other major launchers are shown in grey.
BhutanOther major launchers
01K2K3K4K
1950198020002025
Source. UN Office for Outer Space Affairs (2026).
🇧🇹Bhutan
Cumulative Objects Launched
Cumulative number of objects launched into outer space, 1950–2025. Bhutan is highlighted; other major launchers are shown in grey.
BhutanOther major launchers
05K10K15K20K
1950198020002025
Source. UN Office for Outer Space Affairs (2026).
Strategic Infrastructure

🇧🇹 Bhutan’s energy, connectivity and the material foundations of capability

Airports·2013
2
Railways
—
Ports
—
Electricity Access
—
Internet Users·2009
50K

TransportBack to top ↑

Airports

2 (2013)

Digital connectivityBack to top ↑

Telephones - mobile cellular

560,000 (2012)

Internet users

50,000 (2009)

Internet country code

.bt

OtherBack to top ↑

Electricity - production

7.23 billion kWh (2010 est.)

Electricity - consumption

1.68 billion kWh (2010 est.)

Electricity - exports

5.4 billion kWh (2010 est.)

Electricity - imports

20 million kWh (2010 est.)

Electricity - installed generating capacity

1.505 million kW (2010 est.)

Electricity - from fossil fuels

1.1% of total installed capacity (2010 est.)

Electricity - from nuclear fuels

0% of total installed capacity (2010 est.)

Electricity - from hydroelectric plants

98.9% of total installed capacity (2010 est.)

Electricity - from other renewable sources

0% of total installed capacity (2010 est.)

Crude oil - production

0 bbl/day (2012 est.)

Crude oil - exports

0 bbl/day (2010 est.)

Crude oil - imports

0 bbl/day (2010 est.)

Crude oil - proved reserves

0 bbl (1 January 2013 est.)

Refined petroleum products - production

0 bbl/day (2010 est.)

Refined petroleum products - consumption

1,719 bbl/day (2011 est.)

Refined petroleum products - exports

0 bbl/day (2010 est.)

Refined petroleum products - imports

1,998 bbl/day (2010 est.)

Natural gas - production

0 cu m (2011 est.)

Natural gas - consumption

0 cu m (2010 est.)

Natural gas - exports

0 cu m (2011 est.)

Natural gas - imports

0 cu m (2011 est.)

Natural gas - proved reserves

0 cu m (1 January 2013 est.)

Carbon dioxide emissions from consumption of energy

335,700 Mt (2011 est.)

Telephones - main lines in use

27,000 (2012)

Telephone system
general assessment:urban towns and district headquarters have telecommunications services
domestic:low teledensity; domestic service is poor especially in rural areas; mobile-cellular service, started in 2003, is now widely available
international:country code - 975; international telephone and telegraph service via landline and microwave relay through India; satellite earth station - 1 Intelsat (2012)
Internet hosts

14,590 (2012)

Airports - with paved runways
total:2
1,524 to 2,437 m:1
914 to 1,523 m:1 (2013)
Airports - with unpaved runways
total:1
914 to 1,523 m:1 (2012)
Roadways
total:8,050 km
paved:4,991 km (includes 622 km of expressways)
unpaved:3,059 km (2003)
National Security

🇧🇹 Bhutan’s force, intelligence and the defence of the nation

Armed Forces Personnel
—
Military Personnel
—
Military Spending
—
Spending (% of GDP)
—
Armed Forces (% of Labour Force)
—

Personnel and equipmentBack to top ↑

Military service age and obligation

18 years of age for voluntary military service; no conscription; militia training is compulsory for males aged 20-25, over a 3-year period (2012)

Forces under armsBack to top ↑

Active-duty strength on the Correlates of War series, which reaches back to 1816 and so carries a nation’s whole record of mobilisation rather than its present establishment. The card opens the full cross-country comparison.

Military Personnel·2000
6,000
#134 World
18162022

OtherBack to top ↑

Military branches

Royal Bhutan Army (includes Royal Bodyguard and Royal Bhutan Police) (2009)

Manpower available for military service
males age 16-49:202,407
females age 16-49:180,349 (2010 est.)
Manpower fit for military service
males age 16-49:157,664
females age 16-49:144,861 (2010 est.)
Manpower reaching militarily significant age annually
male:7,363
female:7,095 (2010 est.)
Human Capital

🇧🇹 Bhutan’s population, health and the skills that sustain capability

Population
733.6K
Median Age
26.2years
Generative AI Use
—
Life Expectancy at Birth
69years
Total Fertility Rate·2014
2children born/woman

DemographyBack to top ↑

Population

733,643

the Factbook population estimate is consistent with the first modern census of Bhutan, conducted in 2005; previous Factbook population estimates for Bhutan, which were on the order of three times the total population reported here, were based on Bhutanese Government publications that did not include the census (July 2014 est.)
Nationality
noun:Bhutanese (singular and plural)
adjective:Bhutanese
Age structure
0-14 years:27.3% (male 102,196/female 97,923)
15-24 years:20.1% (male 75,327/female 72,472)
25-54 years:40.8% (male 159,868/female 139,236)
55-64 years:5.8% (male 22,769/female 19,699)
65 years and over:6% (male 23,153/female 21,000) (2014 est.)
Dependency ratios
total dependency ratio:48.1 %
youth dependency ratio:40.8 %
elderly dependency ratio:7.2 %
potential support ratio:13.8 (2014 est.)
Median age
total:26.2 years
male:26.8 years
female:25.6 years (2014 est.)
Population growth rate

1.13% (2014 est.)

Birth rate

18.12 births/1,000 population (2014 est.)

Death rate

6.78 deaths/1,000 population (2014 est.)

Sex ratio
at birth:1.05 male(s)/female
0-14 years:1.04 male(s)/female
15-24 years:1.04 male(s)/female
25-54 years:1.15 male(s)/female
55-64 years:1.09 male(s)/female
65 years and over:1.11 male(s)/female
total population:1.1 male(s)/female (2014 est.)
Total fertility rate

2.02 children born/woman (2014 est.)

Migration and urbanisationBack to top ↑

Net migration rate

0 migrant(s)/1,000 population (2014 est.)

Urbanisation
urban population:35.6% of total population (2011)
rate of urbanization:3.65% annual rate of change (2010-15 est.)
Major urban areas — population

THIMPHU (capital) 99,000 (2011)

HealthBack to top ↑

Life expectancy at birth
total population:68.98 years
male:68.06 years
female:69.95 years (2014 est.)
Infant mortality rate
total:37.89 deaths/1,000 live births
male:38.34 deaths/1,000 live births
female:37.42 deaths/1,000 live births (2014 est.)
Hospital bed density

1.8 beds/1,000 population (2011)

Drinking water source
improved:urban: 99.4% of population; rural: 97.3% of population; total: 98.1% of population
unimproved:urban: 0.6% of population; rural: 2.7% of population; total: 1.9% of population (2012 est.)
Sanitation facility access
improved:urban: 74.5% of population; rural: 31.1% of population; total: 46.9% of population
unimproved:urban: 25.5% of population; rural: 68.9% of population; total: 53.1% of population (2012 est.)
Obesity — adult prevalence rate

5.3% (2008)

Children under the age of 5 years underweight

12.8% (2010)

EducationBack to top ↑

Literacy
definition:age 15 and over can read and write
total population:52.8%
male:65%
female:38.7% (2005 est.)
School life expectancy (primary to tertiary education)
total:13 years
male:13 years
female:13 years (2012)

Welfare and equityBack to top ↑

Population below poverty line

12% (2012)

Household income or consumption by percentage share
lowest 10%:2.3%
highest 10%:37.6% (2003)

OtherBack to top ↑

Maternal mortality rate

180 deaths/100,000 live births (2010)

Contraceptive prevalence rate

65.6% (2010)

Health expenditures

4.1% of GDP (2011)

Physicians density

0.07 physicians/1,000 population (2008)

HIV/AIDS - adult prevalence rate

0.2% (2012 est.)

HIV/AIDS - people living with HIV/AIDS

1,100 (2012 est.)

HIV/AIDS - deaths

100 (2012 est.)

Major infectious diseases
degree of risk:high
food or waterborne diseases:bacterial and protozoal diarrhea, hepatitis A, and typhoid fever
vectorborne diseases:dengue fever and malaria (2013)
Education expenditures

4.7% of GDP (2011)

Child labor - children ages 5-14
total number:25,801
percentage:18 % (2010 est.)
Unemployment, youth ages 15-24
total:7.2%
male:7.3%
female:7.2% (2012)
Disputes - international

lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a common boundary alignment to resolve territorial disputes arising from substantial cartographic discrepancies, the largest of which lie in Bhutan's northwest and along the Chumbi salient

Governance and Integrity

🇧🇹 Bhutan’s institutions, law and the integrity of the state

Government
constitutional monarchy
Capital
Thimphu
Administrative Divisions
20districts
Independence·1907
1.9K
Suffrage
18years of age; universal

State structureBack to top ↑

Country name
conventional long form:Kingdom of Bhutan
conventional short form:Bhutan
local long form:Druk Gyalkhap
local short form:Druk Yul
Government type

constitutional monarchy

Capital
name:Thimphu
geographic coordinates:27 28 N, 89 38 E
time difference:UTC+6 (11 hours ahead of Washington, DC, during Standard Time)
Administrative divisions

20 districts (dzongkhag, singular and plural); Bumthang, Chhukha, Chirang, Daga, Gasa, Geylegphug, Ha, Lhuntshi, Mongar, Paro, Pemagatsel, Punakha, Samchi, Samdrup Jongkhar, Shemgang, Tashigang, Tashi Yangtse, Thimphu, Tongsa, Wangdi Phodrang

Constitution

previous (various royal decrees); first constitution drafted November 2001 - March 2005, ratified 18 July 2008 (2011)

Suffrage

18 years of age; universal

Legal systemBack to top ↑

Legal system

civil law based on Buddhist religious law

International law organisation participation

has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt

Political institutionsBack to top ↑

Executive branch
chief of state:King Jigme Khesar Namgyel WANGCHUCK (since 14 December 2006); note - King Jigme Singye WANGCHUCK abdicated the throne on 14 December 2006 and his son immediately succeeded him; the nearly two-year delay between the former King's abdication and his son's coronation on 6 November 2008 was to ensure an astrologically auspicious coronation date and to give the new king, who had limited experience, deeper administrative expertise under the guidance of his father
head of government:Prime Minister Tshering TOBGAY (since July 2013)
cabinet:Council of Ministers (Lhengye Zhungtshog) nominated by the monarch in consultation with the prime minister and approved by the National Assembly; members serve fixed, five-year terms; the leader of the majority party is nominated as the prime minister
elections:the monarchy is hereditary, but the 2008 constitution grants the Parliament authority to remove the monarch with two-thirds vote; election of a National Assembly last occurred in July 2013, resulting in the transfer of power to the former opposition party
Legislative branch

bicameral Parliament or Chi Tshog consists of the non-partisan National Council or Gyelyong Tshogde (25 seats; 20 members elected by each of the 20 administrative districts (dzongkhags) for four-year terms and 5 members appointed by the king); and the National Assembly or Tshogdu (47 seats; members nominated by the two parties and elected by direct, popular vote for five-year terms)

Judicial branch
highest court(s):Supreme Court (consists of 5 justices including the chief justice ); note - the Supreme Court has sole jurisdiction in constitutional matters
judge selection and term of office:Supreme Court chief justice appointed by the monarch upon the advice of the National Judicial Commission, a 4-member body to include the Legislative Committee of the National Assembly, the attorney general, the Chief Justice of Bhutan and the senior Associate Justice of the Supreme Court; other judges (drangpons) appointed by the monarch from among the High Court judges selected by the National Judicial Commission; chief justice serves a 5-year term or until reaching age 65 years, whichever is earlier; the four other judges serve 10-year terms or until age 65, whichever is earlier
subordinate courts:High Court (first appellate court); District or Dzongkhag Courts; sub-district or Dungkhag Courts

OtherBack to top ↑

Political parties and leaders

Bhutan Peace and Prosperity Party (Druk Phuensum Tshogpa) or DPT [Jigme THINLEY]; Bhutan Kuen-Nyam Party or BNK [Sonam TOBGAY]; People's Democratic Party or PDP [Tshering TOBGAY]; Druk Nymrub Tshogpa or DNT; Druck Chirwang Tshogpa or DCT

Political pressure groups and leaders

United Front for Democracy (exiled); Druk National Congress (exiled)

Flag description

divided diagonally from the lower hoist-side corner; the upper triangle is yellow and the lower triangle is orange; centered along the dividing line is a large black and white dragon facing away from the hoist side; the dragon, called the Druk (Thunder Dragon), is the emblem of the nation; its white color stands for purity and the jewels in its claws symbolize wealth; the background colors represent spiritual and secular powers within Bhutan: the orange is associated with Buddhism, while the yellow denotes the ruling dynasty

National anthem
name:"Druk tsendhen" (The Thunder Dragon Kingdom)
lyrics/music:Gyaldun Dasho Thinley DORJI/Aku TONGMI
adopted 1953
Information and Influence

🇧🇹 Bhutan’s identity, media and the projection of influence

Languages·2005
Sharchhopka 28%, Dzongkha
Religions·2005
Lamaistic Buddhist 75.3%…
Ethnic Groups
Ngalop
Broadcast Media·1999
state-owned TV station es…
Intl Organisations
ADB, BIMSTEC, CP, FAO, G…

Identity and cultureBack to top ↑

Languages

Sharchhopka 28%, Dzongkha (official) 24%, Lhotshamkha 22%, other 26% (includes foreign languages) (2005 est.)

Religions

Lamaistic Buddhist 75.3%, Indian- and Nepalese-influenced Hinduism 22.1%, other 2.6% (2005 est.)

Ethnic groups

Ngalop (also known as Bhote) 50%, ethnic Nepalese 35% (includes Lhotsampas - one of several Nepalese ethnic groups), indigenous or migrant tribes 15%

National symbol(s)

thunder dragon known as Druk

MediaBack to top ↑

Broadcast media

state-owned TV station established in 1999; cable TV service offers dozens of Indian and other international channels; first radio station, privately launched in 1973, is now state-owned; 5 private radio stations are currently broadcasting (2012)

Diplomatic networkBack to top ↑

International organisation participation

ADB, BIMSTEC, CP, FAO, G-77, IBRD, ICAO, IDA, IFAD, IFC, IMF, Interpol, IOC, IOM (observer), ISO (correspondent), ITSO, ITU, NAM, OPCW, SAARC, SACEP, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO (observer)

Diplomatic representation in the US

none; note - the Permanent Mission to the UN for Bhutan has consular jurisdiction in the US; the permanent representative to the UN is Kunzang C. NAMGYEL (since February 2014); address: 343 East 43rd Street, New York, NY 10017; telephone [1] (212) 682-2268; FAX [1] (212) 661-0551

Diplomatic representation from the US

the US and Bhutan have no formal diplomatic relations, although frequent informal contact is maintained via the US embasssy in New Delhi (India) and Bhutan's Permanent Mission to the UN

Financial Strength

🇧🇹 Bhutan’s fiscal depth, reserves and the capacity to act

Inflation Rate (consumer Prices)·2013
11%
Public Debt·2013
38.9%GDP
Taxes and Other Revenues·2013
27.6%GDP
Reserves of Foreign Exchange and Gold
—
Debt - External·2011
$1.3B

FiscalBack to top ↑

Budget
revenues:$588.2 million
expenditures:$639.5 million
the government of India finances nearly one-quarter of Bhutan's budget expenditures (2013 est.)
Taxes and other revenues

27.6% of GDP (2013 est.)

Budget surplus (+) or deficit (-)

-2.4% of GDP (2013 est.)

Public debt

38.9% of GDP (2013 est.)//44.1% of GDP (2012 est.)

Monetary and externalBack to top ↑

Inflation rate (consumer prices)

11% (2013 est.)//10.9% (2012 est.)

Debt — external

$1.275 billion (2011)//$836 million (2009)

Exchange rates

ngultrum (BTN) per US dollar -//56.61 (2013 est.)//53.44 (2012 est.)//45.73 (2010 est.)//46.68 (2009 est.)//43.51 (2008 est.)

Production and Innovation

🇧🇹 Bhutan’s output, industry and the engine of prosperity

Real GDP (purchasing Power Parity)
—
Real GDP Growth Rate
—
Real GDP per Capita
—
GDP (official Exchange Rate)·2013
$2.1B
Labor Force
336.4K

OutputBack to top ↑

GDP (official exchange rate)

$2.133 billion (2013 est.)

GDP composition, by sector of origin
agriculture:13.8%
industry:41.2%
services:45% (2013 est.)
GDP composition, by end use
household consumption:37.9%
government consumption:21.3%
investment in fixed capital:64%
investment in inventories:-0.1%
exports of goods and services:28.6%
imports of goods and services:-51.7%; (2013 est.)

Sectors and industryBack to top ↑

Industries

cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism

Industrial production growth rate

7% (2013 est.)

LabourBack to top ↑

Labour force

336,400

major shortage of skilled labor (2012)
Unemployment rate

2.1% (2013)//4% (2009)

OtherBack to top ↑

Economy - overview

Bhutan's economy, small and less developed, is based largely on agriculture and forestry, which provide the main livelihood for more than half of the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Multilateral development organizations administer most educational, social, and environment programs, and take into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Bhutan’s largest export - hydropower to India - is creating employment and will probably sustain growth in the coming years. Only 5% of Bhutan’s 30,000 megawatt hydropower potential is currently tapped. The large amount of equipment needed to import materials to build hydropower plants has expanded Bhutan's trade and current account deficits. Bhutan’s GDP has rebounded strongly since the global recession began in 2008. Bhutan hopes to play a larger role in regional economic integration as a member of the South Asia Association for Regional Cooperation and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.

GDP (purchasing power parity)

$5.235 billion (2013 est.)//$4.947 billion (2012 est.)//$4.529 billion (2011 est.)

data are in 2013 US dollars
GDP - real growth rate

5.8% (2013 est.)//9.2% (2012 est.)//8.5% (2011 est.)

GDP - per capita (PPP)

$7,000 (2013 est.)//$6,700 (2012 est.)//$6,100 (2011 est.)

data are in 2013 US dollars
Gross national saving

29.6% of GDP (2013 est.)//29.1% of GDP (2012 est.)//29.2% of GDP (2011 est.)

Agriculture - products

rice, corn, root crops, citrus; dairy products, eggs

Labor force - by occupation
agriculture:62%
industry:19%
services:19% (2012 est.)
Distribution of family income - Gini index

38.7//38.1

Fiscal year

1 July - 30 June

Central bank discount rate

NA%

Commercial bank prime lending rate

14% (31 December 2013 est.)//14% (31 December 2012 est.)

Stock of narrow money

$224.9 million (31 December 2013 est.)//$191.9 million (31 December 2012 est.)

Stock of broad money

$1.099 billion (31 December 2013 est.)//$1.062 billion (31 December 2012 est.)

Stock of domestic credit

$915 million (31 December 2013 est.)//$874.4 million (31 December 2012 est.)

Market value of publicly traded shares

$NA//$283.4 million

Stock of direct foreign investment - at home

$63.5 million

Trade and Investment

🇧🇹 Bhutan’s markets, capital and the terms of global exchange

Exports·2012
$721.8M
Imports·2012
$1.3B
Current Account Balance·2013
$401.5M
Remittances
—
Exchange Rates·2013
ngultrum

External balanceBack to top ↑

Current account balance

$401.5 million (2013 est.)//-$311.6 million (2012 est.)

ExportsBack to top ↑

Exports

$721.8 million (2012 est.)//$662.2 million (2011 est.)

Exports — partners

India 83.8%, Hong Kong 10.8% (2013 est.)

Exports — commodities

electricity (to India), ferrosilicon, cement, calcium carbide, copper wire, manganese, vegetable oil

ImportsBack to top ↑

Imports

$1.28 billion (2012 est.)//$1.185 billion (2011 est.)

Imports — partners

India 72.3%, South Korea 6% (2013 est.)

Imports — commodities

fuel and lubricants, passenger cars, machinery and parts, fabrics, rice

Contents

GINC Indices
Foundations
Capability Domains