Infra Developments in South Asia: Bhutan & Maldives

Despite their relatively small markets, Bhutan and Maldives provide Indian construction companies a dynamic space for infra development with an appreciable degree of social and cultural familiarity.

In the first of the series, it was reported that infrastructure development in neighbouring countries like Bhutan, Sri Lanka, Bangladesh, and Nepal is presenting an opportunity to Indian construction companies and equipment manufacturers to explore business opportunities in these countries – either as infra developers/contractors or as exporters of construction equipment.

In this 2nd Series, Saeeduddin Faridi looks at infra developments in the smallest of the countries in the South Asian region viz Bhutan and Maldives. Both the countries are vital to India’s geopolitical interests and conversely, India is a vital development partner for them.

Bhutan
Bhutan is a landlocked country in South Asia, nestled between India and China. It is often associated with the Gross National Happiness Index which is an important principle in the governance of the Kingdom. The country poses unique challenges in the infrastructure and construction domain because of its mountainous terrain and small population. The Kingdom is home to about 7.8 lakh people with a $2.4 billion economy. The construction sector is an important player in the economy; in 2016, the sector contributed over 16% to the GDP of the country.


In its early period, the Kingdom’s infrastructure needs focused primarily on road construction. This was needed to build a strong network of communication and open communities in remote regions to socio-economic changes. Since then, Bhutan has seen an evolution in the infrastructure and construction industries with the incorporation of new technologies, increasing presence of the private sector, and a focus on sustainable construction with environmental considerations.