For years, Bhutan has been known as the peaceful kingdom in the Himalayas that values “Gross National Happiness” over GDP.
But now, this tiny landlocked country is looking to balance its values with economic ambition.
Bhutan is rolling out big ideas—from clean energy projects to bold tech zones—as it tries to attract investors and create jobs at home.
The goal? To give young people a reason to stay, not leave.
But while the vision is exciting, the path ahead is anything but simple.
The Brain Drain That’s Hurting Bhutan’s Future
One of Bhutan’s biggest challenges right now is that many of its brightest minds are packing their bags and heading abroad.
In 2023 alone, around 13,500 Bhutanese citizens moved to Australia—a significant number for a country with fewer than 800,000 people.
This outflow of talent is hitting the country hard.
Just as Bhutan tries to spark innovation and growth, it’s losing the very people who could make that happen.
Add to that the high cost of building infrastructure in a remote, mountainous region between India and China, and the hurdles get even steeper.
Harnessing the Power of Water to Fuel Growth
One thing Bhutan has in abundance is clean energy, especially from its fast-flowing rivers.
Hydropower is the country’s main export, and it currently produces 2.5 gigawatts of electricity, with another 3 gigawatts on the way.
The idea is to use this renewable power to attract industries like green tech, data centers, or even energy experiments like hydrogen production.
According to Bhutan’s sovereign wealth fund, Druk Holdings and Investments (DHI), companies could run small pilot projects here and then scale them across the region.
It’s a smart way to turn Bhutan’s natural assets into business opportunities.
Bitcoin Mining in the Mountains
Here’s one of the more surprising parts of Bhutan’s new strategy: Bitcoin mining.
The country quietly started mining cryptocurrency back in 2019, when Bitcoin was still under $10,000.
Fast forward to May 2025, and Bitcoin’s price is hovering around $97,400.
Because Bhutan’s power comes from clean hydropower, its Bitcoin mining operations are considered low-carbon.
That makes the country’s digital gold dig much greener than most.
The profits now support a $3 billion fund, but as anyone in crypto knows, those prices can swing wildly.
A crash could wipe out those gains just as quickly.
Still, DHI insists Bitcoin is part of a diversified strategy.
Introducing the Gelephu Mindfulness City
One of Bhutan’s most ambitious plans is a futuristic special economic zone called Gelephu Mindfulness City.
Located near the Indian border, this new development will span about 2,500 square kilometers.
Think of it as a next-gen hub for health clinics, tech start-ups, and eco-conscious businesses—all built around the idea of balancing productivity with peace of mind.
But there’s a long way to go. Roads, homes, and digital infrastructure need to be built from the ground up.
It could be years before this dream becomes reality, and it’s going to require a lot of money and manpower.
Growth in Happiness, But GDP Still Catching Up
Even as Bhutan chases innovation and industry, it hasn’t forgotten its roots.
The country’s Gross National Happiness index rose from 0.743 in 2010 to 0.781 in 2022.
Over the same period, the GDP per person also climbed from around $2,400 to $3,700—though it took a hit in 2020 during the pandemic.
Tourism, once a major income source, is still bouncing back.
In 2023, Bhutan welcomed 145,000 visitors, down from over 315,000 in 2019.
The country still limits tourist numbers under its “high-value, low-impact” model to preserve its natural beauty and culture.
Following in Singapore’s Footsteps
When it comes to managing its investments, Bhutan is taking a page from Singapore’s Temasek Holdings, one of the world’s most respected sovereign wealth funds.
Temasek manages a portfolio worth about $300 billion, with major stakes in companies like Singapore Airlines.
Bhutan’s DHI is still small by comparison, holding shares in 24 local companies including Bhutan Telecom and Bank of Bhutan.
But leaders say it’s not about size—it’s about staying nimble, moving fast, and making the most of the country’s green energy.
A Bold Vision With Real Risks
There’s no question that Bhutan is thinking big.
It’s trying to marry tradition with modern tech, and harmony with hustle.
But the stakes are high. If even one part of the plan—hydropower expansion, Bitcoin mining, or the Gelephu project—goes wrong, it could stretch Bhutan’s limited resources thin.
On the other hand, if things go right, the kingdom could offer its young citizens a future where they don’t need to move halfway across the world to succeed.
Investors are paying attention. So are the people of Bhutan. The next few years will be key.