Country Presentation for CSI Promotion in Bhutan 21-22 November - - PowerPoint PPT Presentation

Ministry of Economic Affairs Department of Cottage and Small Industry

Country Presentation for CSI Promotion in Bhutan

21-22 November 2019 Phnom Penh, Cambodia

Ministry of Economic Affairs Department of Cottage and Small Industry

Presentation Outline

• Country’s Physical Feature & Location
• Key Facts of Bhutan
• GDP Growth Rate over the Years
• Background of Cottage and Small Industry, MoEA
• Some Key Challenges faced by CSIs in Bhutan
• Development of Startup and CSI as a Flagship Program
• How is it different from the normal Plan
• Entrepreneurship ecosystem (6 domains)

Ministry of Economic Affairs Department of Cottage and Small Industry

Country’s Physical Feature & Location

• Landlocked Country
• Highly Mountainous
• Between China and India
• In the Eastern Himalayas
• Bhutan Standard Time is 6 Hrs ahead of Green wich Mean Time (GMT)

Ministry of Economic Affairs Department of Cottage and Small Industry

Map & National Flag of Bhutan

Ministry of Economic Affairs Department of Cottage and Small Industry

National Dress

• National Dress is Gho for Men and Kira for Women. All Bhutanese are

required to wear the National Dress in Government Offices, Schools and on formal Occasions.

Ministry of Economic Affairs Department of Cottage and Small Industry

Currency of Bhutan

Where 73 Ngultrum = 1 US $ (approx)

Ministry of Economic Affairs Department of Cottage and Small Industry National Sports

National Bird

Ministry of Economic Affairs Department of Cottage and Small Industry National Flower: National Tree: National Animal:

Ministry of Economic Affairs Department of Cottage and Small Industry Key Facts about Bhutan

• 1. Land Area (Sq. km) : 38,394
• 2. Forest Cover (percent) : 70.5%
• 3. Projected Population (in nos.), 2017 : 727,145
• 4. Average Household Size, (PHCB, 2017) : 3.9
• 5. Labour Force Participation Rate, (LFS 2016) : 62.2
• 6. Unemployment Rate, (LFS 2016) 2.1 %
• 7. Electricity Generation (MU), 2017 : 7,729.77
• 8. Electricity Exports (MU), 2017 : 5,700.99

Ministry of Economic Affairs Department of Cottage and Small Industry

• 8. Tourist Arrivals (dollar paying tourist), 2017 : 62,272
• 9. Revenue Earned from Tourism (million US $), 2017 : 79.81
• 10. Balance of Trade (million Nu.), 2017 : (29,699.0)
• 11. Annual Average Inflation Rate (percent), 2017 : 4.96
• 12. General Literacy Rate (2017): 71.4%
• 13. Youth Literacy Rate : (2017) : 93.1%
• 14. GDP at Current Price (million Nu.), 2016/17 : 164,627.92
• 15. GDP per Capita (2017) : US$ 3438.16
• 16. Population Poverty Rate (2017) : 8.2% (56000 people)

Ministry of Economic Affairs Department of Cottage and Small Industry GDP Growth rate over the years

Ministry of Economic Affairs Department of Cottage and Small Industry

Background

• Department of Cottage and Small Industry created

in 2010 to spearhead the development of the CSIs.

• The Cottage, Small and Medium Industry Policy

(CSMI) was adopted in 2012. CSIs 22,064

Employment generated

99,288

>95% of the total industries

Services 79% P&M 12% Contract 9%

% share of CSIs by Sector

Ministry of Economic Affairs Department of Cottage and Small Industry

• 2. Some key challenges faced by CSIs in Bhutan

Minimal value addition of CSI products No standards, certification and brand No dedicated

• utlets

Inadequate skilled labour force Poor entrepreneurship culture

Ministry of Economic Affairs Department of Cottage and Small Industry

Development of Startup and CSI as a flagship program

12th FYP is the last plan before LDC graduation: CSI sector is key for building an inclusive, resilient and diversified economy

Socio economic benefit of CSIs

Narrowing the Gap

Catalyst for economic growth Employment generation Reduces Poverty and Inequality Curbs rural urban migration Economic self reliance (women empowerment) Value addition

CSI

Ministry of Economic Affairs Department of Cottage and Small Industry

How is it different from the normal plan?

Collaborative and whole of government approach Covers all business phases and entrepreneurship ecosystem A definitive platform to link startups and CSI development

Ministry of Economic Affairs Department of Cottage and Small Industry

Entrepreneur ecosystem (6 domains)

Ministry of Economic Affairs Department of Cottage and Small Industry

Objective

The overall objective of the policy is to promote establishment

• f new CSIs and improve the performance and

competitiveness of existing CSIs to enhance their participation and contribution to the Bhutanese economy.

Ministry of Economic Affairs Department of Cottage and Small Industry

• 1. Policy and Legislative Framework
• Baseline Study for contribution of CSI for GDP.
• Identify and institute support measures for informal sector.
• Create a platform for public private dialogue for CSIs.

Ministry of Economic Affairs Department of Cottage and Small Industry

• 2. Entrepreneurship Culture and Human Capital Development
• Entrepreneurship competition and fairs at all educational levels.
• Support the winning ideas of various entrepreneurship competitions.
• Conduct skills needs assessment of the CSIs for TVET curriculum

revision and development.

• Promote industry collaboration and linkages between TVET institutions

and CSI in implementation of TVET programmes.

Ministry of Economic Affairs Department of Cottage and Small Industry

• 3. Business Development Support and Infrastructure
• Set up Business Incubation Centers, Startup Centers, Fablabs to facilitate the growth of

CSIs.

• Facilitate establishment of market infrastructure such as warehouses, cold storage

facilities, naturally ventilated store, pack house, etc. for CSI products.

• Design and implement schemes for technological up-gradation of the CSIs
• Invest in areas that will support and facilitate the growth of CSIs with a provision for

gradual transfer of ownership to the private/communities.

• Identify and institute support measures for informal sector development

Ministry of Economic Affairs Department of Cottage and Small Industry

• 4. Innovation and Technology Adoption
• Foster greater Intellectual Property adoption among CSIs
• Technology database
• Allow FDI in select small industry sector
• 5. Access to Market
• Promote and market brand Bhutan
• Facilitate the participation of CSIs in targeted B2B events, fairs, road shows, and

exhibitions.

• Establish dedicated outlets for CSI products within and outside Bhutan
• Leverage mission, consulates, embassies in promoting and marketing of CSIs products.

Facilitate use of e-commerce platforms including e-payment systems by CSIs for greater market access.

Ministry of Economic Affairs Department of Cottage and Small Industry

• 6. Enhancing Access to Finance and Incentives
• Strengthen the PSL scheme and apply the coordination mechanism to other credit

sources for lending to CSIs.

• Incentivize CSI bank and FIs to lend at affordable rates to CSI.
• Expand the coverage of MFIs in rural areas

Ministry of Economic Affairs Department of Cottage and Small Industry

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