Bhutan's IT sector is small but growing, centered on the Thimphu TechPark and supported by the Digital Drukyul strategy. The sector aims to diversify the economy, create youth employment, and position Bhutan as a niche technology hub.
Overview
Bhutan's information technology sector is small by international standards but growing strategically, contributing 3.03% of GDP as of 2022. The sector is driven by the Digital Drukyul national strategy and institutional support from the Government Technology Agency (GovTech), established in 2022 to lead ICT and digital sector development.[1]
Thimphu TechPark
Thimphu TechPark is Bhutan's primary IT hub, hosting 19 FDI and local tenant companies that provide direct employment to over 800 youth and contribute 180 million Nu annually to the economy.[2] The Bhutan Innovation and Technology Centre (BITC), inaugurated in 2012, has nurtured startups including Nano, Housing.bt, DrukRide, and Bhutanbuy.com.[2]
Digital Economy Strategy
The Digital Economy Development and Transformation Strategy, integral to the 13th Five-Year Plan (2023–2028), aims to position Bhutan as a technologically advanced society. Priorities include national fibre-optic backbone expansion, an additional international internet gateway, and exploration of low-earth orbit satellite systems (including Starlink) for remote area connectivity.[1]
Challenges
The sector faces hurdles including inadequate digital infrastructure in rural areas, a domestic-focused industry with limited global competitiveness, weak linkages between educational institutions and industries, and concessionary tax rates that have not yet attracted transformative foreign investment.[1]
References
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