The country approved 14 Foreign Direct Investment or FDI projects worth over Nu 73bn last year, a decrease from 17 projects approved in 2024. This is according to the latest FDI annual report, which the Ministry of Industry, Commerce, and Employment released today.
Although the number of approved projects declined compared to 2024, the total investment value increased by Nu 13bn.
This increase is driven by Tata Power Company Limited’s investment of nearly 69 billion ngultrum in the Khorlochhu Hydropower Limited.
Sector-wise, the service sector dominated overall FDI, accounting for 69 per cent of total investments, slightly higher than in 2024.
The hotel and resort sector attracted the largest share of FDI, with 41 projects accounting for over 30 per cent of total investments. However, this represents a decline from over 34 per cent in 2024.
The IT sector recorded the second-highest FDI share at 26.7 per cent, comprising 36 projects.
In 2024, FDI projects attracted capital inflows amounting to USD 5.99M in convertible currency, along with INR 223.33 M.
According to the report, tax contributions from FDI companies increased by more than 14 per cent in 2024 compared to the previous year. Tax revenue rose from just over Nu 2bn in 2023 to Nu 2.3bn in 2024.
Asia, Europe, and America were the major sources of FDI into the country.
Within Asia, India continues to be the dominant investor with 47 projects, contributing 55.3 per cent, followed by Singapore at 15 per cent and Thailand at 9.4 per cent.
In terms of employment, FDI projects directly employed more than 5,200 Bhutanese as of December last year. The hotel and resort sector employed the highest number, with 1,780 employees, accounting for 34 per cent.
In terms of employment, FDI projects directly employed more than 5,200 Bhutanese as of December last year. The hotel and resort sector employed the highest number, with 1,780 employees, accounting for 34 per cent.
As of December, last year, a total of 135 FDI projects had been approved. Of these, 64 projects are currently operational, while 71 projects are at various stages of construction.
Overall, 47 per cent of approved projects have commenced commercial operations, with most projects located in Thimphu, Paro, and Chhukha districts.
To achieve the ambitious target of generating 500 billion ngultrum in foreign direct investments by 2029, the government is going to focus more on agro-based industries, tourism, hydropower and energy, IT, and agriculture sectors.
Deki Lhazom & Kelzang Chhophyel
