Overview

The Kingdom of Bhutan is a small, mountainous, landlocked country in South Asia, located in the eastern Himalayas, bordered by India and China.

Bhutan is home to a population of about 790,000 and is one of three countries that are carbon negative. Over 70 per cent of its land is covered by forest.

Bhutan is a Buddhist country which recognises its "spiritual heritage" under their Constitution. Practised by approximately 75 per cent of the population, Buddhism plays a vital role in the country. The remaining population is mainly Hindu.

Bilateral relations

Australia and Bhutan enjoy warm and friendly ties built on education and people‑to‑people links. 

Diplomatic relations with Bhutan began on 14 September 2002.  Our relations date to 1962 when Prime Minister Robert Menzies invited the Royal Government of Bhutan to attend the Colombo Plan meeting in Melbourne.  In the same year, the Colombo Plan countries admitted Bhutan as a member. Australia was the destination for the first group of Bhutanese sent overseas for higher education in the 1970s.

Australia and Bhutan share democratic values, a commitment to the international rules based order, and support a peaceful, stable and prosperous Indian Ocean region.

There were several positive developments in the bilateral relations in recent years, including high-level ministerial and head of state visits, a development program that contributes to Bhutan's long-term needs, and the opening of a new Embassy of Bhutan in Canberra in late 2021.

Australia is one of six countries where Bhutan has an embassy. Australia's High Commissioner to India in New Delhi is accredited as Australia’s Ambassador to Bhutan.

Economic and trade relations

Australia's two-way trade with Bhutan increased from $388 million in 2022–23 to $1.0 billion in 2024.

Services trade made up over 99 per cent of total bilateral trade, primarily in the education sector.

People-to-people links

In the last decade, Australia has become home to Bhutan's largest community abroad, including 37,500 Bhutan-born residents in June 2024, according to the Australian Bureau of Statistics. There were 12,500 international students from Bhutan for the January–July 2025 period.

Bhutanese diaspora communities, students and alumni in Australia play a vital role contributing to both our countries and bilateral relations.

The skills, knowledge and experience they gain in Australia benefit Bhutan's growth and development on their return to Bhutan.

Development Program

In 2025–26, Australia will provide an estimated $6.2 million in Official Development Assistance to Bhutan focused on strengthening human capital, increasing regional economic links, climate action, gender equality and inclusive democracy. This includes an estimated $2.1 million in bilateral development assistance.

Australia Awards program has supported over 370 Australia Awards Scholarships since 2009.

Political overview

In 2008, Bhutan's political system changed from an absolute monarchy to a democratic constitutional monarchy. The fifth King of Bhutan, His Majesty, King Jigme Khesar Namgyel Wangchuck is the head of state or Druk Gyalpo "Dragon King". 

Bhutan’s Prime Minister is head of government, following a change from an absolute monarchy to a democratic constitutional monarchy in 2008. Bhutan has held general elections every five years since – in 2008, 2013, 2018 and 2023–24.

Prime Minister Tshering Tobgay has served in the role since January 2024. He previously served as Prime Minister from 2013 to 2018. He visited Australia in 2016 and 2025.

Bhutan's parliament consists of a lower and upper house. The lower house (National Assembly) consists of 47 members, each elected by a constituency. The upper house (National Council) consists of 25 members, 20 representing districts and five nominated by the King.

High level visits

Recent high-level visits and meetings include: 

• 17–20 March 2025: The Prime Minister of Bhutan, His Excellency Tshering Tobgay made a private visit to Melbourne to attend as keynote speaker to the climate investor forum. He also met with Assistant Foreign Minister Tim Watts.
• 30–31 October 2024: Parliamentary delegation led by Bhutan Deputy Speaker, the Honourable Sangay Khandu visited Australia.
• 10–18 October 2024: The King of Bhutan, His Majesty King Jigme Khesar Wangchuck was the first Head of State to visit Australia. On this private visit, the King met with business leaders and the diaspora as well as government leaders including a meeting with the Governor General, Prime Minister and Assistant Foreign Minister.
• 15–16 May 2023: Assistant Foreign Minister, Tim Watts visited Bhutan to meet with government, community and religious leaders.
• 07–10 June 2023: Parliamentary and business delegation from Western Australia led by the Michelle Hopkins, MLA, Speaker of the Legislative Assembly visited Bhutan.
• 10–16 September 2022: Then Foreign Minister, Tandi Dorji visited Australia as part of the celebration to mark the 20th anniversary of our diplomatic relations.