Agriculture is the predominant sector of economic activities, labour-employment and material livelihood opportunities of majority of population in Bhutan. The country is facing high levels of illiteracy, infant mortality, malnutrition and poverty. The income and food insecurity and growing disparities across the country underline the importance of targeted interventions for poverty reduction. The development activities have been adversely affected due to lack of skilled manpower. The future growth in productivity is contingent on proper human resource development. The trickle-down effect of the high national income and economic growth has not percolated down to the level of marginalized and poor section of the society. The inequity in the land ownership and resource distribution initiatives in the rural areas have repercussions on the well-being of the poor households. The planned efforts have so far failed to ameliorate sufferings of the marginalized and vulnerable segments of the population. The socio-economic development is hampered due to lack of authentic data. The paper concludes that for economic growth, high productivity and poverty reduction it is necessary that Bhutan should rapidly develop human resources.