The Government has earmarked Nu 100 million under the Economic Stimulus Programme (ESP) to support the growth and formalization of cottage and small industries (CSIs), particularly targeting the informal sector.

The initiative aims to help informal businesses scale up by providing capacity building, basic infrastructure, and essential equipment. One of the key expectations is that supported enterprises will formally register within a year of receiving assistance.

Officials say the programme will place special focus on building hard skills, especially for agro-based industries, where technical knowledge and hands-on training are critical for sustainable growth.

“This is a step toward mainstreaming the informal sector,” an official said. “While it will take time to fully scale up, formalization is the first step in integrating these businesses into the broader economy.”

The targeted support is expected to create jobs, boost local production, and strengthen Bhutan’s small business ecosystem, which plays a vital role in rural development and economic resilience.

By Kinley Yonten