Cottage and Small Industry Action Plan (2019 to 2023)

1.1 Introduction................................................................................................. 1

1.2 Implementation Mechanisms. ................................................................... 1

1.2.1 Evidence Based Policy Making......................................................... 1 1.2.1.1Consultation.............................................................................. 2

1.2.2 Implementation Period. .................................................................... 2

1.2.3 Responsibility for Implementation. ................................................. 2

1.2.4 Coordination of Implementation..................................................... 2

1.2.5 Monitoring and Evaluation............................................................... 2-3

1.2.6 Implementation Budget .................................................................... 3 2. CSI Action Plan (2019-2023): Matrix. ............................................................. 3-24 Cottage and Small Industry Action Plan (2019 to 2023) |i ii| Cottage and Small Industry Action Plan (2019 to 2023) 1. CSI Action Plan (2019-2023)

1.1 Introduction The objectives of CSI Policy 2019 comprise of six strategic domains of entrepreneurship ecosystems namely: i. Policy and Legislative Framework ii. Entrepreneurship Culture and Human Capital Development iii. Business Development Support and Infrastructure iv. Access to Finance and Incentives v. Innovation and Technology Adoption vi. Access to Market This document, the 1st CSI Action Plan (2019-2023) of such three Action Plans converts the measures identified in the CSI Policy 2019 into a matrix of activities, responsibilities, deadlines and resources. Future reviews will add depth to the future Action Plans, enabling the program of measures to be rolled over until 2030.

1.2 Implementation Mechanisms This section discusses the responsibility for the coordination of the implementation of the CSI Policy 2019, the consultation process, how the policy will be monitored and evaluated, and finally identifies the sources of funding for its implementation.

1.2.1 Evidence Based Policy Making In preparing the CSI Policy 2019, the Department for Cottage and Small Industry (DCSI), Ministry of Economic Affairs has conducted detailed research on numerous aspects of CSI development. Relevant stakeholders were involved in the research and/or the consultation processes (see below). The overall measures fall within the priorities of the Royal Government of Bhutan (RGoB), as established based on the Gross National Happiness (GNH) philosophy. Discussions were held with public and private institutions on the specific measures, responsibilities and deadlines to be implemented in this Action Plan, to maximize the degree of ownership on their part and as well as on DCSI’s part. Cottage and Small Industry Action Plan (2019 to 2023) |1

1.2.1.1 Consultation The previously discussed background research led to a series of draft measures. These draft measures (Action Plans and the matrix) were first discussed, drafted and then have been validated with all concerned stakeholders. The feedback obtained was incorporated into the final version of this Action Plan covering the period 2019-2023. This represents the outcome of this wide-ranging consultation process.

1.2.2 Implementation Period The CSI Policy and the subsequent Action Plans must be both aspirational and ambitious if they are to have the desired transformational impact. However, it is critical for the time period to be realistic, to be capable of being implemented. The overall timeline for the CSI Policy 2019 is until 2030. This is a realistic time period within which to achieve meaningful CSI sector development.

1.2.3 Responsibility for Implementation The MoEA has overall responsibility for the implementation of the CSI Policy 2019 as well as the related Action Plans but within the MoEA, the Department of Cottage and Small Industry is responsible for the overall management and coordination. However, since CSI development is horizontal or cross-cutting in nature, it is not only the MoEA that has responsibility to implement the CSI Policy but other parts of agencies will also be responsible. These have been and will continue to be involved in the process of preparing and implementing the subsequent Action Plans.

1.2.4 Coordination of Implementation Given the horizontal or cross-cutting nature of the CSI development, they can only be effectively implemented through: Committee of Secretaries (CoS): The Committee of Secretaries will be the inter- Ministerial Coordination Committee and will oversee the implementation of the Action Plans. The DCSI will act as the Secretariat of the inter-ministerial coordination body and will prepare six monthly Action Plan implementation reports to be submitted to CoS.

1.2.5 Monitoring and Evaluation DCSI is responsible for monitoring and evaluation and this will be achieved through the following tools: i. DCSI, MoEA in collaboration with lead agencies and relevant stakeholders 2| Cottage and Small Industry Action Plan (2019 to 2023) shall develop, implement and monitor the action plans. A periodic progress report shall be submitted to CoS. ii. Independent evaluation of the Action Plan and to roll out the subsequent Action Plans. iii. Independent evaluation of the CSI Policy and Action Plans by mid-2030 to formulate a new Policy. iv. Gross National Happiness Commission (GNHC) Secretariat shall ensure that the specified activities for agencies involved are incorporated in the respective Annual Performance Agreement and secure adequate resources to implement the Policy. v. GNHC shall also monitor the Policy according to the GNHC Secretariat’s Policy Monitoring Framework and carry out post adoption evaluation.

1.2.6 Implementation Budget The resources required for the implementation of the CSI Policy will be determined according to the specification of the Action Plans. The resources will come from two principal sources: i. State budget: Resources to implement the Action Plan will be secured through the state fund. Each organization is responsible for incorporating the CSI Action Plan, including the resource requirements, into their annual plans. Each lead/implementer is responsible for mobilizing resources for implementation of the CSI Action Plans, with MoEA and GNHC support ii. International community: Not all the necessary resources for CSI development can be provided by the state budget. The MoEA will liaise closely with the GNHC in order to establish an efficient resource mobilization process to ensure that state funding is supplemented by resources from the international donors in a timely and coherent manner. 2. CSI Action Plan (2019-2023): Matrix

2.1 Action Plans: Most measures relate to activities to be carried out during the current Action Plan (2019-2023). However, in certain cases the measures will roll out to subsequent Action Plans covering the entire period of the CSI Policy. Cottage and Small Industry Action Plan (2019 to 2023) |3 Strategic Objective 1: Policy and Legislative Framework Timeline Implementation Sl Activities/ Lead Indicator Base Policy Statement Partners Budget Target status (as of Remark # Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~) Build forum for CSIs Build forum for CSIs to to ensure regular, BAEYUL, ensure regular, proactive, proactive, two-way Loden Number of 7 forums/ two-way public private DCSI, ToR for the forum 1 public private dialogue ,MoAF, 2m meetings dialogue to he CSI Flagship dialogue between the CSI MoEA developed between the CSI sector MoLHR, held held till 2023 sector and the relevant and the relevant RGoB APIC RGoB agencies. agencies. The rules had Revise the Rules already been and Regulations for Revise the Rules and 2 June-20 approved by the the Establishment Regulations for the MoEA (DoT, Revised DCSI, Rules Revised but Rule Making and Operation of Establishment and DoI, RTIOs, R&R in 1995 MoEA approval pending. Committee of the Commercial and Operation of Commercial PPD) place Rule Ministry and will Industrial Ventures in and Industrial Ventures be put up in the Bhutan, 1995. in Bhutan, 1995. upcoming PPCSC meeting Adopt an Integrated Integrated MoIC shall provide Business licensing End to end automation of MoEA/ business Digital technical backstop Digital Drukyul 3 system- end to end MoEA business licensing system MoIC licensing Drukyul FG to enable efficient FSP under MoIC automation for CSIs to system implementation ease doing business DRC, MoF is 4| Cottage and Small Industry Action Plan (2019 to 2023) Organize meetings with implementing the Establish Integrated relevant stakeholders Bhutan integrated MoF/ E-platform for tax for integration of other Integrated Tax System This is not part of 4 MoF MoEA/ - filing, licensing and related system for tax e-platform and they have Digital Drukyul MoIC registration administration and conducted tender registration and work is in the process of award. Adopt registration system for cottage scale Put up a note to industries with validity Registration system for Registration the Ministry for of 3 years for those DCSI, DoT, DoI& 5 cottage scale industries - system in June-23 renewal fees. Draft activities not requiring MoEA RTIOs with validity of 3 years. place a rule/guideline for any sector clearance the implementation. and those not in the restricted category Strategic Objective 1: Policy and Legislative Framework Timeline Implementation Sl Activities/ Lead Indicator Base Policy Statement Partners Budget Target status (as of Remark # Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~) Develop e-commerce regulatory frame E-Commerce E-Commerce Develop e-commerce Regulatory work and provide DoT, Relevant Guideline being Guideline 6 regulatory frame work to - framework June-20 necessary support to use MoEA Stakeholders developed and launched during ease doing business. in place e-commerce platforms adopted BEFIT 2019 by CSIs Assess the feasibility of Assess the feasibility of The Bankruptcy bill Needs an providing protection providing protection MoF/ Accessibility has been reviewed expertise to 7 MoEA - June-20 to CSIs under the to CSIs under the OAG Study by OAG and prepare and Bankruptcy Bill Bankruptcy Bill submitted to MoF. finalize the bill Organize meeting for integration of tax system with Establish consultation stakeholders--The forum for tax Organize workshops with IT team will be Number of 4 meetings/ administration reforms tax payers on the process MoF taking this up. 8 MoEA - complaints/ dialogues affecting CSIs to bring of BIT filing and it’s (DRC) Organize workshop meetings held about ease in tax filing assessments for taxpayers on by the CSIs BIT filing process- yet to be conducted, targeted in December, 2019 DHI will get back on this component Encourage corporate after discussion Encourage corporate entities to support CSI DHI/ CSI with GNHC. Not 9 entities to support CSI MoEA - June 2030 development as part of BCCI supported exactly committed. development. their CSR Support to be rendered to Digital Startups. Prepare Satellite CSI Satellite CSI accounting Letter written to accounting to account to account CSI NSB/ NSB. Needs to 10 MoF 2m Study report June-21 CSI Flagship CSI contribution to the contribution to the MoEA validate CSI data Cottage and Small Industry Action Plan (2019 to 2023) |5 economy economy. (SBPD) Strategic Objective 1: Policy and Legislative Framework Timeline Implementation Sl Activities/ Lead Indicator Base Policy Statement Partners Budget Target status (as of Remark # Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~) Successfully Adopt CSI Policy 2019 DCSI, MoAF, launched the policy and create awareness 0.1m CSI Policy July-19 MoEA APIC,RMA, in July,2019 and Revision of CSME 2012 programmes. 2019 and ongoing 11 BSB,MoF, Policy & CSI Report Action Plan MoLHR Developed a draft Develop subsequent DCSI, Report ,BCCI 0.8m December-23 format for Action Action Plans ,MoEA Plan DCSI to prepare Six Every six Submit the final Monthly Progress Reports DCSI, Progress 1st Progress Report months till report to CoS by on implementation of CSI MoEA Report by December,2019 2023 December, 2019. Action Plan for CoS Inter-Ministerial 12 Coordination Meetings with GNH Meeting to be DCSI, Commission/Cabinet to convened as and MoEA be convened, if required when required Collect, analyze and DCSI, Annual CSI End of every 13 CSI Report disseminate annual CSI MoEA Report fiscal year Report 6| Cottage and Small Industry Action Plan (2019 to 2023) Strategic Objective 2: Entrepreneurship Culture and Human Capital Development Timeline Implementation Policy Activities/ Lead Indicator Base Sl # Partners Budget Target status (as of Remark Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~)

14.1 Awareness Raising Programs 1000 students MoLHR Will be conducted and entrepreneurship Awarness from Colleges, Startup (DoEHR/ MoEA 8m next year around Develop an activities to influence programs TVET and Flagship DTE) April,2020 advocacy program perceptions towards Schools 14 for promotion of entrepreneurship. entrepreneurship Business culture 14.1. 2 Conduct Advocacy DCSI, Relevant advocacy 2500 Business Advocacy 2.6 m 2352 Workshop to be CSI Flagship MoEA Stakeholders conducted participants Program. conducted in October,2019 MoLHR Business 15.1Conduct Business Relevant 8 events by Planning for this Startup (DoEHR/ 6m Seedling Program NA Seedling Program. Stakeholders June 2023 coming winter. Flagship DTE) conducted 15.1.2. Entrepreneurship Development Training (Micro works and online DoEHR, free lancing, ToT on MoLHR ToT conducted MoLHR has not Integrate Relevant Startup new business creation (DoEHR/ 63m & capacity NA June-23 planned for this entrepreneurship Stakeholders Flagship 15 and counseling, DTE) developed component as of learning & culture at entrepreneurship 21/8/2019 all educational levels. education development and capacity development for EDP teachers). DoEHR, Startup

15.1.3. Startup MoLHR has not MoLHR Relevant acceleration Startup acceleration and 23.5 m NA July-23 planned for this ,DoEHR Stakeholders program Flagship prototyping. component as of conducted 21/8/2019 Cottage and Small Industry Action Plan (2019 to 2023) |7 Strategic Objective 2: Entrepreneurship Culture and Human Capital Development Timeline Implementation Policy Activities/ Lead Indicator Base Sl # Partners Budget Target status (as of Remark Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~)

16.1. Startup programs / events (hackathon Encourage on technology, DoEHR, entrepreneurship startup week, business Startup program MoLHR has not MoLHR, Relevant Startup 16 competition and fairs idea competition - 64m and events NA June-23 planned for this DoEHR Stakeholders Flagship at all educational within and outside conducted component as of levels. Bhutan, and conduct 21/8/2019 promotion and networking).

17.1. Facilitate materialization of the winning ideas 5 winners To liaise with into a viable business DCSI, Relevant Winners venture into IT Park, DHI, 2m NA CSI Flagship ventures through MoEA Stakeholders facilitated mainstream MoLHR, Loden necessary support and CSIs by Jun-23 Foundation facilitation to new Support the winning startups ideas of various 17 entrepreneurship 17.1.2. Award to competitions. recognize and DCSI, Relevant 21 Call for BEA 5m Award function 20 CSIs CSI Flagship reward potential MoEA Stakeholders CSIs Application done entrepreneurs. The Award will be

17.1.3. Establish a organized during DCSI, Relevant female entrepreneur of 2m Award function 5 4 BEA coinciding CSI Flagship MoEA Stakeholders the year award with CSI Fair in 8| Cottage and Small Industry Action Plan (2019 to 2023) November,2019 Develop and institutionalize 18.1.Institutionalize Tied with support professions mentorship program, DCSI, Relevant Mentorship in ICIMOD in 18 4m NA June-20 CSI Flagship such as mentors to honorarium and MoEA Stakeholders place institutionalizing guide and advise fielding in of expert mentorship entrepreneurs. Strategic Objective 2: Entrepreneurship Culture and Human Capital Development Timeline Implementation Policy Activities/ Lead Indicator Base Sl # Partners Budget Target status (as of Remark Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~) Conduct skills needs assessment of 19 the CSIs for TVET curriculum revision

19.1. Conduct skills and development. MoLHR has not needs assessment of MoLHR TVET Relevant planned for this Startup Mandate the relevant the CSIs for TVET (DTE/ 2m curriculum NA June-21 Stakeholders component as of Flagship agency to review, curriculum revision DoEHR) reviewed 21/8/2019 monitor and evaluate and development. 20 TVET curricula to keep pace with changing market needs and standards. Map and match CSI skills database with Bhutan Labor 21.1. Map and match Databases Market Information CSI skills database MoLHR has not MoLHR matched for System, Job Portal with Labour database Relevant planned for this Startup 21 (DTE/ 2m coordinated NA June-21 System, Employment for coordinated Stakeholders component as of Flagship DoEHR) supply of Registration System demand and supply of 21/8/2019 workforce for coordinated workforce. demand and supply of workforce. Linkages Promote industry 22.1. Promote industry established for The dual training collaboration and collaboration and dual training MoLHR has been linkages between linkages between Relevant program focusing Startup 22 (DTE/ 2m NA June-23 launched just TVET institutions and TVET institutions and Stakeholders on automobile Flagship DoEHR) in construction CSI in implementation CSI in implementation engineering and Sector as of now. of TVET programmes. of TVET programmes. other relevant program Cottage and Small Industry Action Plan (2019 to 2023) |9 Strategic Objective 2: Entrepreneurship Culture and Human Capital Development Timeline Implementation Policy Activities/ Lead Indicator Base Sl # Partners Budget Target status (as of Remark Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~) Promote private sector participation in entrepreneurship curriculum review and development boards to 23.1. Encourage private MoLHR has not foster greater linkage sector participation MoLHR private sector Relevant planned for this Startup 23 between the human in entrepreneurship (DTE/ 2m participation on NA June-23 Stakeholders component as of Flagship resources demanded curriculum review and DoEHR) board 21/8/2019 by the economic development boards. sectors and the skills supplied by the training and education institutions. Startup

24.1. Hard and soft skill DCSI, Number of 961 centers, 94.8 m 600 CSIs Ongoing Activity CSI Flagship training. MoEA beneficiaries CSIs Dzongkhags Already sent 3 emails to

24.1.2. Development Startup DCSI, Number of SACCIT, Thailand and promotion of centers, 10 m 3 12 CSI Flagship MoEA beneficiaries requesting to Handicraft Sector Dzongkhags identify the areas Ensure collaborative of training and synchronized 24.1.3. Capacity for 8 agro- This activity will efforts amongst building in post- DAMC, Number of products & Dzongkhags 12 m be initiated from CSI Flagship agencies in providing harvest and equipment MoAF beneficiaries 156 FGs/ September,2019 24 skills development handling. COOPS 10| Cottage and Small Industry Action Plan (2019 to 2023) training with a DoEHR,

24.1.4. Startup focus to encourage Skills developed MoLHR has not Incubation and digital MoLHR, Relevant Startup women and youth 58m for incubates & NA July-23 planned for this fabrication trainings DoEHR Stakeholders Flagship entrepreneurship. startups component as of and programs 21/8/2019 Number of Conducted a

24.1.5. Product awareness on systematic Need diversification, trainings on Assessment miniaturization, APIC Dzongkhags 12.4 m innovation and 274 artisans (NA) process for CSI Flagship innovation and new new designs determining and designs. conducted for addressing needs APIC clusters for all clusters Strategic Objective 2: Entrepreneurship Culture and Human Capital Development Timeline Implementation Policy Activities/ Lead Indicator Base Sl # Partners Budget Target status (as of Remark Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) line August, 2019) 2020 2021 2022 2023 Plan (2023~) Promote women entrepreneurship in CSIs to maximize the Services are to economic contribution Relevant Relevant 25 2023~ BDS provided NA be catered as and of both genders 25.1. Promote Agencies Stakeholders when required through provision of entrepreneurship preferential business amongst vulnerable development services. groups including Promote PWDs in CSIs entrepreneurship to improve their amongst vulnerable livelihoods through groups including provision of PWDs in CSIs preferential business 26 to improve their development services. livelihoods through provision of preferential business development services. Cottage and Small Industry Action Plan (2019 to 2023) |11 Strategic Objective 3: Business Development Support and Infrastructure Timeline Implementation Policy Activities/ Lead Base Sl # Partners Budget 2019 - 2020- 2021 - 2022 - Next Action Indicator (s) Target status (as of Remark Statement Measures Agency line 2020 2021 2022 2023 Plan (2023) August, 2019) Drafted ToR for two new

27.1. Construct and Incubation Center DCSI, Relevant 2 Incubation Startup furnish 2 incubation 119 m 1 at Gyalpozhing MoEA Stakeholders Centre Flagship centers under Mongar and Dhamdum under Samtse DoEHR, Set up Business 27.1.2. Establishment MoLHR MoLHR has not Incubation Centers, of Business TTI, IZCs, Startup (DTE/ 60 m 5BIC planned for this 27 Startup Centers, and Incubation Center at Colleges Incubation Flagship DoEHR) component as of Fablabs to facilitate TTIs/IZCs and Fablabs 21/8/2019 the growth of CSIs. established DoEHR, in TTIs, IZCs MoLHR MoLHR has not

27.1.3. Establishment TTI, IZCs, and Colleges Startup (DTE/ 75m 5 Fablabs planned for this of Fablabs Colleges Flagship DoEHR) component as of 21/8/2019

27.1.4. Strengthening DCSI, Relevant 64.50 Startup Center Preparation of Startup NA June-23 of Startup Center MoEA stakeholders m strengthened BoQ Flagship

28.1. Establish Establish CSI estates Budget is yet to CSI estates in in Dzongkhags which be confirmed Dzongkhags which DCSI, Relevant CSI Estates Startup 28 are not catered by 2023~ 1 from DoT (Trade 12| Cottage and Small Industry Action Plan (2019 to 2023) are not catered by MoEA Stakeholders established Flagship the industrial estates/ Facilitation the industrial estates/ parks. Support Program) parks. Designate space 29.1. Designate space Space for As and when for Startups in the for Startups in the DCSI, Relevant 29 0 2023~ Startups June-23 DCSI receives an industrial estates/ industrial estates/ MoEA Stakeholders designated application parks. parks. Stimulate the 30.1. Stimulate development of the development DAMC will have business cluster of business cluster to reflect this and/or value and/or value DAMC, Relevant CSI 30 0 activity in their chains to increase chains to increase MoAF Stakeholders Flagship next Ficsal Year competitiveness of competitiveness of APA CSI products and CSI products and services. services. Strategic Objective 3: Business Development Support and Infrastructure Timeline Implementation Policy Activities/ Lead Base Sl # Partners Budget 2019 - 2020- 2021 - 2022 - Next Action Indicator (s) Target status (as of Remark Statement Measures Agency line 2020 2021 2022 2023 Plan (2023) August, 2019) Facilitate establishment of market infrastructure Support to 156 such as warehouses, 31.1. Packaging DAMC, CSI 31 Dzongkhags 12 m FG/Coops by cold storage facilities, support MoAF Flagship June-23 naturally ventilated store, pack house, etc. for CSI products.

32.1. Establishment 2 through CSI Market of market DAMC, Relevant Gelephu RAMCO CSI 25m Infrastructure infrastructure MoAF Stakeholders and 1 through Flagship in place (Collection Points) Head Quarter.

32.1.2. Establishment Market 9 for Gelephu of market linkages DAMC, Relevant CSI 7m Linkages NA June-23 RAMCO and 6 for to link producers to MoAF Stakeholders Flagship established Head Quarter Facilitate market. establishment of One Central 32 market linkages to Yarn Bank Fully link producers to established to Asked for budget

32.1.3. Establish Relevant operationalized CSI market. APIC 5m cater to supply 6 release for the Central Yarn Bank. Stakeholders 1 central yarn Flagship of stock to 6 next quarter bank existing yarn banks 2 CFC Ground works

32.1.4. Construction CFC at Radhi constructed started with the CSI of common facility APIC Dzongkhags 6 m and Tsebar fully at Tsebar and identification of Flagship center. operationalized Radhi the site Develop and strengthen farmers 33.1. Strengthen DAMC will have groups, clusters and cooperatives, farmers Capacity to reflect this DAMC, Relevant CSI 33 community-based groups, clusters and 0 Building June-23 activity in their MoAF Stakeholders Flagship initiatives in addition community-based Programs next Fiscal Year to supporting initiatives. APA Cottage and Small Industry Action Plan (2019 to 2023) |13 cooperatives. Strategic Objective 3: Business Development Support and Infrastructure Timeline Implementation Policy Activities/ Lead Base Sl # Partners Budget 2019 - 2020- 2021 - 2022 - Next Action Indicator (s) Target status (as of Remark Statement Measures Agency line 2020 2021 2022 2023 Plan (2023) August, 2019)

34.1. Industrial The Procurement Development 103.4 Number of 104 Division is CSI DCSI, MoEA Dzongkhags 528 CSIs Scheme and Essential m beneficiaries CSIs working on Flagship Service Scheme. quotation call

34.1.2. Monitoring Evaluation on and Evaluation Evaluation Industrial Scheme CSI Report for Industrial DCSI, MoEA Dzongkhags 2m Report of the June-20 would be carried Design and Flagship Development Schemes out towards end of implement schemes Scheme FY 2019-20 34 for technological

34.1.3. Value Advertisement upgradation of the DAMC, Relevant CSI addition equipment 68 NA 156 Coops/FGs floated in mass CSIs. MoAF Stakeholders Value Flagship through C-BuDS. media Addition Preparing Equipment

34.1.4. Support Procurement disbursed and 9 Clusters clusters with pre Relevant process of pre- CSI APIC 3.9 m production NA supported by loom machines and Stakeholders loom machines Flagship diversified June-20 dyeing equipment. and dyeing equipments

35.1. Provide Provide preferential preferential procurement for procurement for locally produced locally produced CSI products CSI products while ensuring the while ensuring the GPPMD, Relevant 35 specifications and 0 specifications and MoF Stakeholders qualities are equally qualities are equally competitive with 14| Cottage and Small Industry Action Plan (2019 to 2023) competitive with other products other products and services in the and services in the market. market. Invest in areas that 36.1. Invest in areas will support and that will support facilitate the growth and facilitate the of CSIs with a growth of CSIs with a Relevant 36 0 provision for gradual provision for gradual Dzongkhags transfer of ownership transfer of ownership to the private/ to the private/ communities. communities. Strategic Objective 3: Business Development Support and Infrastructure Timeline Implementation Policy Activities/ Lead Base Sl # Partners Budget 2019 - 2020- 2021 - 2022 - Next Action Indicator (s) Target status (as of Remark Statement Measures Agency line 2020 2021 2022 2023 Plan (2023) August, 2019)

37.1. Carry out study Identify and institute DCSI, Study Report Proposal CSI to identify Informal Dzongkhags 4 m June-22 support measures MoEA and Measures submitted to JICA Flagship Sectors. for informal sector instituted in 37 JICA to support development. 37.1.2. Institute Dzongkhags this initiative CSI measures in each DCSI, MoEA Dzongkhags 16 m as in select (pilot) Flagship Dzongkhags. recommended Dzongkhags. Cottage and Small Industry Action Plan (2019 to 2023) |15 Strategic Objective 4: Enhancing Access to Finance and Incentives Timeline Implementation Lead Indicator Sl # Policy Statement Activities / Measures Partners Budget Base line Target status (as of August, Remark Agency 2019 - 2020 - 2021 - 2022 - Next Action (s) 2019) 2020 2021 2022 2023 Plan (2023) 21 activities already in the PSL Scheme. However, it is more under the Processing. Strengthen the PSL 38.1.PSL Priority list DCSI, List updated by CSI RMA PSL List updated The PSL Council scheme and apply updated for financing MoEA June 20 Flagship meeting held on 10th the coordination June, 2019 decided 38 mechanism to other not to update the credit sources for list. . lending to CSIs.

38.1.2. Facilitate To discuss with credit access for 21 RMA & GNHC to DCSI & Equity portion Fund disbursed identified products RMA, FIs 31.44 m NA develop the fund RMA disbursed-list by June 23 and CSI targets under disbursement/ flagship. allocation modality Encourage banks and FIs to commit a FIs lending Incentives are

39.1. Incentivize CSI 39 certain proportion of at affordable provided through banks and FIs to lend CSIs benefited- their loans towards rates and FIs tax exemptions on at affordable rates affordable rates CSIs. RMA FIs 0 committing NA interest income from and encourage FIs to and through Incentivize CSI bank certain portion lending to CSIs as commit portion of loan portfolios and FIs to lend at of loan portfolio per PSL guidelines 40 their loans to CSIs affordable rates to to CSIs for FIs. CSI. 16| Cottage and Small Industry Action Plan (2019 to 2023) As of August 2019, RMA has accorded There are Expand the coverage approval for 6 MFIs. 32 MFI of MFIs in rural 41.1. Expand the List of MFIs Depends on And as per the MFI branches in 41 areas consistent with coverage of MFIs in RMA FIs 3 MFIs established interested clients regulations, the MFIs the country the RGoB’s Financial rural areas shall have a majority as of August Inclusion Policy. of its clients from 2019 rural. Explore means to de- Followed up with risk lending to CSIs CIB and DCSI were through measures 42.1. Adoption of Alternate Credit Alternate Credit informed that for 42 such as adoption alternate credit CIB RMA Scoring Model in Scoring in place software ($150,000) of alternate credit scoring models place from CIB by June-20 and hardware scoring models. ($100,000) has been allocated Strategic Objective 4: Enhancing Access to Finance and Incentives Timeline Implementation Lead Indicator Sl # Policy Statement Activities / Measures Partners Budget Base line Target status (as of August, Remark Agency 2019 - 2020 - 2021 - 2022 - Next Action (s) 2019) 2020 2021 2022 2023 Plan (2023) Periodically review

43.1. Periodically Written an email and provide fiscal review, refine and/or to Joint Collector and non-fiscal DRC, DCSI, Review/update the 43 abolish incentives and June-23 to update on this incentives for the MoF MoEA incentives replace with targeted component as of development of the ones. 21/8/2019 CSI sector. Ensure proactive and effective mobilization Meeting will be of donor funds to 44.1. Organize DCSI, conducted as and 44 complement and meetings of resource GNHC 0 Agenda & Minutes MoEA when required with supplement the state mobilization. GNHC for budget funds devoted to CSI sector development. Cottage and Small Industry Action Plan (2019 to 2023) |17 Strategic Objective 5: Innovation and Technology Adoption Time line Implementation Sl Policy Activities/ Lead Indicator Partners Budget Base line Target status (as of Remark # Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) August, 2019) 2020 2021 2022 2023 Plan (2023~)

45.1. Foster collaboration Foster collaboration between incubation between incubation unit unit and and entrepreneurship entrepreneurship development cells of development DoEHR/ 45 TTIs and IZC and cells of TTIs and DTE, RUB/MoE tertiary institutions with IZC and tertiary MoLHR Startup Centers, FIs institutions with and CSIs to encourage Startup Centers, innovation. FIs and CSIs to encourage innovation.

46.1. Develop Blue-Print for Develop database for up database for up to Technology Data to date information on date information DCSI, Relevant Database Base ready. The CSI 46 1m 1 appropriate technologies on appropriate MoEA Stakeholders developed database would Flagship for CSIs. technologies for be developed by CSIs. Fablab and Startups Foster greater Conducted Intellectual Property Numbers of

47.1. Awareness Awareness on Developing tailor- adoption among CSIs Awareness activities and DoIP, Identified IPRs for all made programs on 47 through enhanced 0 Programs on IP capacity building MoEA CSIs CSIs identified Brands and Designs awareness activities conducted for 18| Cottage and Small Industry Action Plan (2019 to 2023) programs on IPR. in the Flagship for the CSIs. and capacity building CSIs Program programs.

48.1. Access to global patent design and brand databases and First capacity Provide CSIs with related services, building of the Access to access to global patent through the three TISCs relevant (invention), design and Technology and Officials conducted Technology Three non- Fully brand databases and Innovation Support DoIP, Relevant from 14-16 April 48 0 Information operational operationalized related services, through Centers - TISCs MoEA Stakeholders 2019 in Thimphu instituted for TISCs the three TISCs the Technology and (College of Science by experts from CSIs through Innovation Support and Technology, World Intellectual TISCs. Centers. Jigme Namgyel Property Engineering Organization. College and Thimphu TechPark Ltd.) to CSIs. Strategic Objective 5: Innovation and Technology Adoption Time line Implementation Sl Policy Activities/ Lead Indicator Partners Budget Base line Target status (as of Remark # Statement Measures Agency 2019- 2020- 2021- 2022- Next Action (s) August, 2019) 2020 2021 2022 2023 Plan (2023~) Provide advisory Advisory services and related services

49.1. Advisory assistance in franchising provided to services and and licensing of IPR in CSIs on the legal Based on the Ready to cater related assistance DoIP, Relevant 49 permissible areas, which 0 and technical interest of the to the request/ in franchising and MoEA Stakeholders offer potential for rapid aspects of IP for CSIs demand of CSIs licensing of IPR in business development licensing and permissible areas and employment franchising, generation. when required. FDI Policy revised

50.1. Facilitate Depends on Allow FDI in select small DCSI, Relevant List of FDI in to facilitate foreign 50 FDIs in select small 0 the interested scale industry sector. MoEA Stakeholders small sector investment in select industry sector investors small Industry

51.1. Voucher Encourage innovation scheme to stimulate and creativity through DCSI, Number of IVS Call for Application CSI 51 R&D, innovation Dzongkhags 1.6 m 1 CSI 8 CSIs Innovation Voucher MoEA beneficiaries done Flagship and technological Scheme. absorption by CSIs.

52.1. Promote MoLHR Promote R&D in TVET 52 R&D in TVET and DTE/ and tertiary institutions. tertiary institutions. DoEHR Cottage and Small Industry Action Plan (2019 to 2023) |19 Strategic Objective 6: Access to Market Time line Implementation Sl Activities/ Lead Next Indicator Base Policy Statement Partners Budget 2019- 2020- 2021- 2022- Target status (as of August, Remark # Measures Agency Action Plan (s) line 2020 2021 2022 2023 2019) (2023~)

53.1. Awareness on GHP/GMP/ Number of BAFRA, Relevant Planned in CSI Certification 1.5 m participants 30 MoAF Stakeholders September,2019 Flagship requirements to trained CSIs.

53.1.2. Subcontract Facilitate food samples industries to to reference Number of Not yet received any improve the laboratories for BAFRA, Relevant products and samples from CSIs CSI quality of 3m 100% authentication MoAF Stakeholders packaging and also budget is yet Flagship products and of label and materials tested to be released services through verification of 53 promotion nutritional claims of standards,

53.1.3. Increase facilitation of Accreditations to ISO/IEC 17065 conformity Number of new 3 products all CSI products Initiated assessment accreditation BAFRA, Relevant CSI assessment 14 m CSIs products accreditations and testing of CSIs based on scope of BAFRA’s MoAF Stakeholders Flagship services including certified only capacity of NFTL GHP/GMP Criteria food product calibration. enhanced certification.

53.1.4. Capacity Testing Scope of Increased building of Activity will be BAFRA, Relevant NFTL increased scope to test 5 CSI National Food 30 m initiated when MoAF Stakeholders to test CSI parameters of CSI Flagship Testing Laboratory budget is released products products 20| Cottage and Small Industry Action Plan (2019 to 2023) (NFTL). Strategic Objective 6: Access to Market Time line Implementation Sl Activities/ Lead Next Indicator Base Policy Statement Partners Budget 2019- 2020- 2021- 2022- Target status (as of August, Remark # Measures Agency Action Plan (s) line 2020 2021 2022 2023 2019) (2023~) This is perhaps the Awareness component which 6 awareness was planned for Aug

54.1. Awareness programs Number of and Nov 2019 and programs on conducted on Relevant awareness March 2020. With CSI certification BSB 1m NA standardization Stakeholders programs no release of budget Flagship and conformity and conformity conducted and identification of assessment. assessment by manufacturers BSB June -2023 has not been able to take this activity forward. Certification

54.1.2. Product CSI component starts certification cost 11 products to Flagship Relevant Number of only in the 2020- with technical BSB 3.85m 0 be certified by Stakeholders products certified 2021 FY. We cannot expertise from June-23 Create awareness certify in the absence outside Bhutan. on standards of standards. and conformity To start the 54 assessment standardization including process, BSB needs metrological Standards for the list of product services. Number of 21 CSI products and standards

54.1.3. Develop and Relevant CSI BSB 3.6m standards developed and which has not been adopt standards. Stakeholders Flagship developed adopted by conveyed as yet. June-23 BSB is still to get a response to our request from DCSI on this matter. This component involves

54.1.4. Increase CSI 6 awareness procurement of 10 scope of metrology Flagship programs Nos of metrology accreditation to Number of conducted on equipment. Supplier include volume Relevant awareness BSB 1m standardization is ready but has been and prepare for Stakeholders programs and conformity put on hold due temperature conducted assessment by to non-release of and pressure June -2023 budget. This activity measurement. was planned for Aug 2019. Cottage and Small Industry Action Plan (2019 to 2023) |21 Strategic Objective 6: Access to Market Time line Implementation Sl Activities/ Lead Next Indicator Base Policy Statement Partners Budget 2019- 2020- 2021- 2022- Target status (as of August, Remark # Measures Agency Action Plan (s) line 2020 2021 2022 2023 2019) (2023~)

55.1. Develop DoT, Relevant CSI 0.20 m Guideline June-21 Guideline developed Guideline for BB MoEA Stakeholders Flagship and Rules and

55.1.2. Develop Rules and DoT, Relevant Regulations in CSI rules and 0.25 m June-20 Regulations MoEA Stakeholders place Flagship regulations for BB developed

55.1.3. Develop DoT, Relevant CSI criteria for two 6.26 m Criteria in place June-22 Promote and MoEA Stakeholders Flagship sector brands. 55 market Brand

55.1.4. Develop Bhutan. criteria, specifications and DoT, Relevant CSI 3m Brand Bhutan June-22 product profile MoEA Stakeholders Flagship applied to CSI for the application products of BB.

55.1.5. Apply BB DoT, Relevant CSI 0.65 m June-23 on CSI products. MoEA Stakeholders Flagship Strategically 56.1. Promote Brand Bhutan position goods and market BB DoT, Relevant promoted at CSI and services 2m June-21 to international MoEA Stakeholders National & Flagship produced by market. International level CSIs in high Brand Bhutan value market 56.1.2. Registration DoT, Relevant Registered at CSI 2.1 m registered with June-20 56 niches using of BB with IP. MoEA Stakeholders National level Flagship DoIP, MoEA Bhutan’s Seals of Excellence and 56.1.3. Develop 22| Cottage and Small Industry Action Plan (2019 to 2023) Quality, the Seal expertise on DoT, Relevant Capacity CSI of Origin, Bhutan Branding within 1.25m June-20 MoEA Stakeholders developed Flagship Organic Logo and Department. Green Labeling. Encourage public 57.1. Encourage and private public and private entities to use entities to use 57 and promote CSIs and promote CSIs products and products and services. services. Strategic Objective 6: Access to Market Time line Implementation Sl Activities/ Lead Next Indicator Base Policy Statement Partners Budget 2019- 2020- 2021- 2022- Target status (as of August, Remark # Measures Agency Action Plan (s) line 2020 2021 2022 2023 2019) (2023~) CSI Expo successfully

58.1. Conduct DCSI, MoEA (DoT, CSI 0.85 m July-19 conducted during Identify regional National CSI Expo MoEA RMA, BCCI) Flagship BEFIT 2019 and international Fairs and Expo 58 Announcement markets for CSI conducted

58.1.2. Annual DCSI, for Annual CSI CSI products. MoEA 6m 2 4 CSI Fair MoEA Fair done on 16th Flagship August,2019

59.1. Road shows/ Facilitate the 4 Road shows exhibitions for participation of conducted & networking/ 0 for road CSIs in targeted DCSI, Relevant participated CSI 59 linkages with SME 10 m show and 2 for B2B events, fairs, MoEA Stakeholders in 3 Flagship agencies in the exhibition roadshows, and exhibitions for region to explore exhibitions. networking investors in FDI Support

60.1. New CSI Draft Product launching of new DCSI, Relevant New CSIs 8 product launch CSI 60 Product launching 6m Launching Criteria CSI products in MoEA Stakeholders products events Flagship events in place the market.

61.1. Renovation/ Re-modeling of the DCSI, Dzongkhag Draft ToR for CSI old service center 92.5m CSI Market Place developed 1 Market Place MoEA &Thromde Engineer Flagship and development Establish of CSI market place dedicated sales Draft ToR 61 outlets for CSI 61.1.2. Develop for recruiting products. business model consultancy to DCSI, Dzongkhag CSI for operation and 1.5 m June-23 develop operation MoEA &Thromde Flagship management of and management marketplace. modality for the market place Leverage mission,

62.1. Initiate the consulates, establishment of CSI Outlet Letter sent to MFA embassies in DCSI, MoFA CSI 62 outlet and establish 10 m established 2 Outlets for support on 23rd promoting and MoEA Embassies Flagship CSI sales outlet outside Bhutan August,2019 marketing of CSIs outside Bhutan. products. Cottage and Small Industry Action Plan (2019 to 2023) |23 Strategic Objective 6: Access to Market Time line Implementation Sl Activities/ Lead Next Indicator Base Policy Statement Partners Budget 2019- 2020- 2021- 2022- Target status (as of August, Remark # Measures Agency Action Plan (s) line 2020 2021 2022 2023 2019) (2023~) Conduct product mapping/resource DCSI,DoI,

63.1. CSI product inventory MoEA Relevant Resource CSI 63 mapping in 20 3m June-21 of business and BCCI Stakeholders Inventory Report Flagship Dzongkhags opportunities for CSIs. Develop 64.1. Develop mechanisms to mechanisms to prevent products prevent products made outside made outside MoHCA Relevant Mechanisms No mechanisms in 64 0 Bhutan being Bhutan being and APIC Stakeholders implemented place till date sold as Bhutanese sold as Bhutanese products within products within Bhutan. Bhutan Incorporated e-commerce Facilitate use licensing in online of e-commerce 65.1. Facilitate use system. platforms of e-commerce Facilitated for Number of including platforms including DoT, Relevant issuance of 65 0 e-commerce e-payment e-payment systems MoEA Stakeholders e-commerce license licenses issued systems by CSIs by CSIs for greater for 6 e-commerce for greater market market access. entity (seeking RMA access. technical clearance for using Payment Gateway) 24| Cottage and Small Industry Action Plan (2019 to 2023)