The erstwhile Tengye Lekhung, which was subsequently renamed as Tengye Lhenkhang was established in 1967. Initially, known as the Ministry of Trade, Commerce and Industry, it was established as a full-fledged Ministry in 1968 under the reign of the third Druk Gyalpo His Majesty King Jigme Dorji Wangchuck, and renamed as the Ministry of Trade, Industry and Forests. Presently beside the inclusion of the Power, Tourism and Mining Sector it has been officially designated as the Ministry of Trade and Industry.

The Ministry of Trade and Industry comprises of five technical Departments namely,  the Departments of Trade, Industry, Tourism, Energy and Geology and Mines besides the four service Divisions namely the Policy and Planning, Administration and Finance, Human Resource and Intellectual Property. The Ministry also has an Internal Audit Unit. The Ministry also has six Regional Trade and Industry Offices in Thimphu, Phuntsholing, Gelephu, Trongsa, Mongar and Samdrup Jongkhar. The total manpower in the Ministry as of now is 543.