The Flagship Annual Performance Agreement (APA) for 2019-2020 was signed between the Hon’ble Prime Minister, Hon’ble Tengye Lyonpo, Secretary, Ministry of Economic Affairs (MoEA) and the lead implementing agencies – Department of Cottage and Small Industry (DCSI) and Ministry of Labour and Human Resources (MoLHR) on October 7, 2019. The other implementing partners such as Department of Agricultural Marketing & Cooperatives, Bhutan Agriculture & Food Regulatory Authority, Bhutan Standard Bureau, Department of Trade, and the Agency for Promotion of Indigenous Crafts signed the APA on October 14, 2019 in presence of Hon’ble Tengye Lyonpo. The Department’s Annual Performance Agreement of DCSI, MoEA was also signed between Offtg. Secretary, MoEA and Director General, DCSI.
Startups and Cottage and Small Industries (CSIs) was identified as one of the flagship programmes in the 12th FYP considering the greater socio-economic roles – driving innovation and investment, diversifying economic base, creating employment opportunities, curbing rural-urban migration, reducing poverty, and the potential to contribute towards economic self-reliance. DCSI, MoEA along with implementing partners will implement the CSI flagship programme. As part of the CSI flagship programme, the CSI Policy 2019 was launched in July 2019 during BEFIT to bring about improved entrepreneurship ecosystem for the CSI sector.
The flagship programme will provide holistic support covering the entire business phases and create an enabling entrepreneurship ecosystem for the development of CSIs. Enhancing entrepreneurship culture, legal and policy framework, access to finance & incentives, human capital development, access to finance & business development support are the key domains. Some of the key features are enhancing whole of a government approach, providing end-to-end support and linking startups and CSI development.
The key objectives are:
- Promoting high-growth potential CSIs that can graduate to become homegrown champions and find a niche in the regional and international markets.
- Using inclusive growth strategy, to bring the remaining CSIs into the economic mainstream so that they also can contribute to the overall economic growth.
The CSI Flagship Programme is expected to deliver the following key outputs by the end of the 12th FYP:
- Establish dedicated CSI product outlets both within and outside the country
- Upscale, diversify and export about CSI 21 products
- Develop and implement Standards, Certification and Brand Bhutan
- Institutionalize national level CSI fair
- Institute integrated logistics arrangements
In the 2019-20 FY, the CSI flagship program would ensure to enhance entrepreneurship culture, besides infrastructure development initiatives. More than 300 youths will be trained and about 120 existing and new entrepreneurs would be supported which would result in the creation of about 300 employment opportunities. Likewise, to enhance capacity building and awareness, various advocacy workshop and training will be provided to famer’s groups/cooperatives, artisans and entrepreneurs.
To ensure access to market, establishment of CSI market outlets both inside and outside Bhutan will be initiated. It will also continue to provide promotional support through CSI Fair, Expo, Roadshow and Exhibition of CSI products. It will work towards promoting Brand Bhutan in the national and international markets, and new products will be standardized to increase its export. Through the CSI Flagship programme, provision of machines and equipment on cost-sharing basis will be provided to CSIs, farmer’s groups/cooperatives and entrepreneurs.