A STUDY OF INDUSTRIAL RELATIONS IN MANUFACTURING INDUSTRIES IN THE ROYAL KINGDOM OF BHUTAN

Manufacturing Industries form the backbone of a developing economy like Bhutan. They are 
one of the most important factors of socio-economic development of the country and an 
important provider of employment. They contribute 42% of GDP (2017–2018 Annual Report 
of Royal Monetary Authority of Bhutan) with around 11 percent of Bhutan’s workforce. 
Bhutan’s overall development philosophy is based on the concept of Gross National 
Happiness (GNH), which challenges the conventional concept of GDP for measuring the 
progress of the country. Instead it considers the psychological and social wellbeing of the 
citizens and the need to balance between economic growth and social development. 
Industrial Relations in manufacturing industries in Bhutan simultaneously contribute to 
development of GDP and GNH. Industrial Relations directly reflect Bhutan’s national culture, 
socio-economic development, political-administration, newly developed democracy, 
corporate culture and integration of Bhutan into global economic process. However, the 
literature is silent on the study of Industrial Relations (IR) practices in the Bhutanese 
manufacturing industries. Thus, the researchers’ interest is in taking up a study on this vital 
topic for the economy of Bhutan. 

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