In a bid to revitalize the economy and empower local businesses, the People’s Democratic Party (PDP) has announced a groundbreaking stimulus plan worth Nu.15 billion. This strategic move aims to address the challenges faced by Cottage and Small Industries (CSIs) and startups, ensuring their sustained growth and contribution to the nation’s prosperity.

Key Highlights of the Stimulus Plan:

1. Loan Deferment Support and Special Loan Schemes: PDP plans to provide loan deferment support and introduce special loan schemes tailored for businesses struggling to recover from the adverse impacts of the COVID-19 pandemic. This initiative will be executed in consultation with the Royal Monetary Authority (RMA).
2. Programs Initiated by EDB: The party commits to establishing and executing programs initiated by the Economic Development Board (EDB) to further economic growth.
3. Support for Downstream Industries: Focus on establishing downstream industries crucial for supplying goods and services to hydropower development and the 13th plan.
4. Acceleration of Start-ups and CSIs: PDP aims to accelerate the establishment and upscaling of startups and CSIs to foster innovation and entrepreneurship.
5. Promotion of Export Businesses and Import-Substitution Enterprises: Emphasis on supporting businesses engaged in export and import-substitution to boost economic resilience.
6. Support for Domestic Manufacturing Enterprises: Initiatives to promote and support domestic manufacturing enterprises for self-reliance.
7. Liquidity Injection into Financial Institutions: PDP plans to inject liquidity into financial institutions in consultation with the Royal Monetary Authority (RMA) to strengthen the financial sector.
8. Special Measures for Various Sectors: Special measures and support for women entrepreneurs, youth entrepreneurs, farmers, CSIs, film and entertainment industry, construction sector, IT sector, tourism sector, hotels and restaurants, and the public transport sector.

Empowering Cottage and Small Industries (CSIs):

Cottage and Small Industries (CSIs) form the backbone of Bhutan’s economy, constituting 95% of businesses and playing a pivotal role in job creation and income generation. Despite their significance, CSIs face challenges such as limited access to finance, market constraints, and skilled labor shortages.

PDP’s Commitment to Empower CSIs:

1. Policy Recognition: Recognition of CSIs as the foundation of a thriving economy through policy directives, placing them on par with more formalized sectors.
2. Dedicated CSI Window: Establishment of a specialized CSI window to cater to the financial needs of CSIs, offering access to investment funds, working capital, up-scaling funds, venture capital, and tailored financial incentives.
3. FDIs and Partnership Arrangements: Introduction of special FDIs and partnership arrangements between foreign businesses and CSIs, accompanied by incentives for collaborations.
4. Startup and Incubation Centers: Creation of startup and incubation centers in larger Dzongkhags to nurture and support the growth of new CSI enterprises.
5. Economic Development Plans: Requirement for larger Dzongkhags to formulate economic development plans featuring CSIs as key players, identifying services and incentives for their promotion.
6. Land Allocation: All Dzongkhags mandated to identify and allocate land on lease for CSIs to establish their business enterprises.
7. International Market Promotion: Promotion of international export markets for CSI products through various channels, including the establishment of market outlets in major cities worldwide.
8. Competitive Advantage Sustainment: Implementation of policy interventions to sustain the competitive advantage of CSI products over imported alternatives.
9. Certification and Accreditation: Active engagement in securing certification and accreditation of CSI products, both for export and domestic sales.
10. “Buy Bhutanese Product” Initiative: Introduction of the “Buy Bhutanese Product” initiative, mandating government agencies to procure Bhutanese products and encouraging others to do the same.
11. Creation of a Common Forum: Support for the creation of a common forum or association for the CSI sector, ensuring a unified voice in dealings with the government, FDIs, and other relevant agencies.
12. Special Support for Informal Businesses: Provision of special support to informal businesses, hawkers, ‘Kortshong,’ and other vendors, enabling them to operate with due recognition and access to government support.

The People’s Democratic Party’s comprehensive approach underscores its commitment to fostering a resilient and thriving economy, with CSIs and startups at the forefront of sustainable development. The Nu.15 billion stimulus plan is poised to provide the necessary impetus for economic revitalization and inclusive growth.

By Kinley Yonten