Thimphu - Economy

Economy

Further information: Economy of Bhutan and Bhutanese ngultrum

Thimphu is the political and economic centre of Bhutan and the location of the central government. Agriculture and livestock contribute to 45% of the GNP. The use of hydropower plants to generate electricity has also substantially contributed to the economy. Tourism is also a contributor to the economy but its adoption is on a graduated scale maintaining a balance between development and modernization. India is its major trading partner with most of the electricity produced (90%) exported to India, with imports from India limited to 70%. The ngultrum (ISO 4217 code BTN) (Dzongkha: དངུལ་ཀྲམ) has been the currency of Bhutan since 1974. It is subdivided into 100 chhertum (called chetrums on coins until 1979). In 1974, the ngultrum was introduced as the Bhutanese currency replacing the rupee at par. The ngultrum is equal in value to the Indian rupee, since Bhutan's economy is largely dependent on Indian financial and other forms of assistance. Although a city, agriculture is still important to Thimphu and the surrounding district. Even around the royal palace are terraced fields. The main crops grown in the area are rice, corn (maize), and wheat and the lumbering trade is also important to the economy.

A morning market is held on the central square during weekends. These are the only days when the residents of Thimphu can buy fresh fruit and vegetables. The inhabitants rely on the supermarkets for other provisions throughout the week. The market also sells yak butter, cheese, wooden bowls and fabrics. A number of cheap souvenirs from Nepal are also sold at the market. Behind the open market, several shops sell Chinese and Bangladeshi crockery, appliances, shoes, silks and carpets. For many years merchants would come to the central square from all over Bhutan and market their goods and would sleep in the open air. However, in 1986, platforms were erected and in 1989 covered market halls were built over the platforms. A special building for meat products was constructed on the north side of the market. In 2006, the handicrafts section was moved to the new stalls on the other side of the new bridge, built in the traditional style in 2005.

The Loden Foundation, Bhutan's first registered charity, has been based in Thimphu since 2007. It is run by a board of trustees composed of prominent citizens, and the foundation has a working team in the United Kingdom (UK). The organisation was established to support education and promote learning and entrepreneurship in Bhutan and other Himalayan areas and to promote Bhutanese culture and religion in other parts of the world.