Bhutan

Location

• Southern Asia, between China and India
• landlocked; strategic location between China and India; controls several key Himalayan mountain passes

Population

Notable Population Centers

City	Population	Note
Thimphu	98,676	Capital
Phuntsholing	27,658
Tsirang	22,376
Punākha	21,500

Size

• 18,147 square miles
• 47,000 square kilometers
• slightly larger than Maryland; about one-half the size of Indiana

History

After Britain’s victory in the 1865 Duar War, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding land to British India. Ugyen WANGCHUCK -- who had served as the de facto ruler of an increasingly unified Bhutan and had improved relations with the British toward the end of the 19th century -- was named king in 1907. Three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs, and Bhutan allowed Britain to direct its foreign affairs. Bhutan negotiated a similar arrangement with independent India in 1949. The Indo-Bhutanese Treaty of Friendship returned to Bhutan a small piece of the territory annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. Under a succession of modernizing monarchs beginning in the 1950s, Bhutan joined the UN in 1971 and slowly continued its engagement beyond its borders. In 2005, King Jigme Singye WANGCHUCK unveiled the draft of Bhutan's first constitution -- which introduced major democratic reforms -- and held a national referendum for its approval. The King abdicated the throne in 2006 in favor of his son, Jigme Khesar Namgyel WANGCHUCK. In 2007, India and Bhutan renegotiated their treaty, eliminating the clause that stated that Bhutan would be "guided by" India in conducting its foreign policy, although Thimphu continues to coordinate closely with New Delhi. In 2008, Bhutan held its first parliamentary election in accordance with the constitution. Bhutan experienced a peaceful turnover of power following a parliamentary election in 2013, which resulted in the defeat of the incumbent party. In 2018, the incumbent party again lost the parliamentary election. In 2024, of the more than 100,000 ethnic Nepali -- predominantly Lhotshampa -- refugees who fled or were forced out of Bhutan in the 1990s, about 6,500 remain displaced in Nepal.

Climate

varies; tropical in southern plains; cool winters and hot summers in central valleys; severe winters and cool summers in Himalayas

Terrain

mostly mountainous with some fertile valleys and savanna

Languages

Sharchopkha 28%, Dzongkha (official) 24%, Lhotshamkha 22%, other 26% (includes foreign languages) (2005 est.)

Religions

Lamaistic Buddhist 75.3%, Indian- and Nepali-influenced Hinduism 22.1%, other 2.6% (2005 est.)

Government

constitutional monarchy

• Constitution: history: previous governing documents were various royal decrees; first constitution drafted November 2001 to March 2005, ratified 18 July 2008amendment process: proposed as a motion by simple majority vote in a joint session of Parliament; passage requires at least a three-fourths majority vote in a joint session of the next Parliament and assent by the king
• Political Parties and Leaders: n/a
• Suffrage: 18 years of age; universal
• Legal System: civil law based on Buddhist religious law
• Executive Branch: chief of state: King Jigme Khesar Namgyel WANGCHUCK (since 14 December 2006)head of government: Prime Minister Tshering TOBGAY (since 28 January 2024)cabinet: Council of Ministers or Lhengye Zhungtshog members nominated by the monarch in consultation with the prime minister and approved by the National Assembly; members serve 5-year termselection/appointment process: the monarchy is hereditary but can be removed by a two-thirds vote of Parliament; leader of the majority party in Parliament is nominated as the prime minister, appointed by the monarch
• Judicial Branch: highest court(s): Supreme Court (consists of the chief justice and 4 associate justices)judge selection and term of office: Supreme Court chief justice appointed by the monarch on the advice of the National Judicial Commission, a 4-member body to include the Legislative Committee of the National Assembly, the attorney general, the Chief Justice of Bhutan and the senior Associate Justice of the Supreme Court; other judges (drangpons) appointed by the monarch from among the High Court judges selected by the National Judicial Commission; chief justice serves a 5-year term or until reaching age 65 years, whichever is earlier; the 4 other judges serve 10-year terms or until age 65, whichever is earliersubordinate courts: High Court (first appellate court); District or Dzongkhag Courts; sub-district or Dungkhag Courtsnote: the Supreme Court has sole jurisdiction in constitutional matters
• Legislative Branch: legislature name: Parliament (Chi Tshog)legislative structure: bicameral

Demographic Profile

n/a

Economy

• hydropower investments spurring economic development; Gross National Happiness economy; sharp poverty declines; low inflation; strong monetary and fiscal policies; stable currency; fairly resilient response to COVID-19; key economic and strategic relations with India; climate vulnerabilities
• Budget: revenues: $740.328 million (2020 est.)expenditures: $802.177 million (2020 est.)note: central government revenues and expenses (excluding grants/extrabudgetary units/social security funds) converted to US dollars at average official exchange rate for year indicated
• Credit Rating: n/a
• Natural Resources: timber, hydropower, gypsum, calcium carbonate
• Industries: cement, wood products, processed fruits, alcoholic beverages, calcium carbide, tourism
• Agricultural Products: rice, milk, potatoes, root vegetables, maize, oranges, areca nuts, chillies/peppers, pumpkins/squash, carrots/turnips (2023)note: top ten agricultural products based on tonnage
• Land Use: agricultural land: 12.8% (2022 est.)arable land: 1.8% (2022 est.)permanent crops: 0.2% (2022 est.)permanent pasture: 10.8% (2022 est.)forest: 71.6% (2022 est.)other: 15.6% (2022 est.)
• Labor Force by Occupation: n/a
• Imports
• Imported Commodities: refined petroleum, gold, plastics, broadcasting equipment, iron reductions (2023)note: top five import commodities based on value in dollars
• Import Partners: India 82%, Singapore 8%, China 5%, Thailand 2%, Indonesia 1% (2023)note: top five import partners based on percentage share of imports
• Exports
• Exported Commodities: iron alloys, aircraft, dolomite, semi-finished iron, cement (2023)note: top five export commodities based on value in dollars
• Export Partners: India 92%, Italy 4%, Indonesia 1%, China 1%, Singapore 0% (2023)note: top five export partners based on percentage share of exports