Thukten Zangpo

The Start-Up and Cottage and Small Industry (CSI) development flagship programme, initiated in 2019, achieved all its targets and has been deemed a success, according to the Department of Industry, Ministry of Industry, Commerce, and Employment.

The government initiated the flagship programme in 2019 with a Nu 1.2 billion budget to provide end-to-end support and build a vibrant entrepreneurship ecosystem.

The flagship programme aimed to value-add 21 products, support 746 CSIs (both new and existing ones), and create 2,000 jobs – 1,200 jobs in CSI sector and about 800 in start-ups – by 2023.

The flagship programme also targeted to substitute 10 products by the end of 2020, focusing on items like sanitary towels and noodles.

From 2020 to 2023, the focus included production of items like pasteurised butter, cheese, yogurt, pencil, potato products, bricks and hollow blocks, vegetables and fruit juice, cooking oil, herbal tea products, and honey by-products. Over the next four years, the programme sought to impact 3,320 youths.

An official confirmed that all these targets were met, leading to significant development in the CSI sector.

The officials said that the progress is evident in the increased visibility of local CSI products in the market, characterised by improved quality and packaging, and the establishment of dedicated CSI outlets both domestically and internationally.

The flagship programme also addressed infrastructure challenges by setting up facilities such as Fab labs, a CSI estate, and two startup centres. The standardisation and certification of 21 products not only enhanced domestic quality but also made CSI products suitable for export.

Bhutan now boasts two CSI markets  in Perth, Australia and New York, United States.

Under the flagship programme, the government provided over 400 CSIs and startups with the technology to establish or scale up their enterprises. To support artisans in rural areas, a common facility center was established in Radhi, Trashigang, supporting over 200 weavers in skill development, product marketing, and raw material access.

The programme enrolled 2,000 in the entrepreneurship development training programmes, leading to the creation of 61 startups and 254 jobs.

It also provided critical capacity building for over 700 CSIs in areas like bookkeeping, marketing, packaging, labeling, food processing, and digital marketing.

To strengthen the National Food Testing Laboratory, the government procured specialised lab equipment, expanding the testing scope to include mycotoxins, vitamins in cereals and juices, and aflatoxins M1 in milk.

Business development services were offered to over 60 startups, including business health check-ups, product development training, and one-to-one mentoring.

In various gewogs and dzongkhags, 1,340 members from 62 registered and non-registered groups were trained in post-harvest techniques, food processing, and equipment handling.

An official also said that Integrated Entrepreneurship Curriculum in School Education for class XI and XII Commerce Stream was also introduced.

The programme also supported 90 artisans and craftsmen in new product development, establishing a cluster outlet at the Craft Market to market their products. Through the Cooperative Business Development Scheme, 97 farmers’ groups and cooperatives received value-addition equipment.

An official said that the flagship programme was implemented with major stakeholders on board with an established Project Management Unit.

There was no major issue related to coordination, however, he said that the outbreak of a Covid-19 pandemic, though not specific to the CSI sector, disrupted the implementation of the activities as per the plan.

“Some activities had to be delayed or slashed completely. For instance, fairs and exhibitions planned both within and outside the country to enhance the market for CSIs could not be carried out due the pandemic,” an official added.

On the supply side, he added, production increased as the programme supported both the upscaling of existing businesses and the establishment of new ones.

This initiative created a viable ecosystem for nurturing new CSIs and startups, supporting priority industries to enhance the competitiveness of their products and services. The support also included modern technology, capacity-building training, and assistance in obtaining certifications.

On the demand side, the programme offered local consumers a broader selection of locally manufactured products, competitively priced against imports, said an official.

The erstwhile Department of Cottage and Small Industry of the then Ministry of Economic Affairs led the flagship programme with various agency partners.