The industrial sector of Bhutan is dominated by the cottage industry, however, only two percent of the population are engaged in this area. The production is concentrated on cement, wood products, alcoholic beverages and calcium carbide.
In 1998, the GNP was 1,9 billion dollars with a growth rate of 6,5 percent. 38 percent each of this amount comes from agriculture and industry. Only 24 percent comes from the service sector. The rate of inflation in 1996 stood at 7,4 percent.
The most important trading partner of Bhutan is India, from where it gets 77 percent of its imports. The trade deficit in 1997 was estimated at 32 million dollars at an export volume of 99 million dollars. The household budget of Bhutan lies at about 150 million dollars and is almost balanced. The foreign debt makes up approximately 87 million dollars.
Practically all of the electricity of Bhutan is produced by hydraulic energy. Already now, Bhutan exports 1,5 billion kilowatt hours of electricity per year, mainly to India. Bhutan itself has a yearly consumption of about 275 million kilowatt hours. No doubt, the greatest potential for the further economic development of Bhutan can be found here, as well as in the wood production industry and in tourism.