Overview

The Kingdom of Bhutan is a mountainous 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 share warm and friendly relations, underpinned by strong education and people-to-people links, shared democratic values, a commitment to the international rules-based order, and a common interest in a peaceful, stable and prosperous Indian Ocean region.

Australia’s engagement with Bhutan dates back to 1962, when Prime Minister Robert Menzies invited the Royal Government of Bhutan to attend the Colombo Plan meeting in Melbourne. Bhutan was admitted as a Colombo Plan member that same year. Australia later became the destination for the first group of Bhutanese students sent overseas for higher education in the 1970s.

Australia and Bhutan established diplomatic relations on 14 September 2002. Since then, the relationship has continued to grow, supported by high-level visits, Australia’s development cooperation in support of Bhutan’s long-term priorities, and the opening of Bhutan’s Embassy in Canberra in late 2021. Australia’s High Commissioner to India, based in New Delhi, is accredited as Australia’s Ambassador to Bhutan.

Economic and trade relations

Australia's two-way trade with Bhutan was $963,774.8 million in 2024–25. Services trade made up the majority of total bilateral trade, primarily in the education sector. For information on Australia’s goods and services trade with Bhutan, refer to the Bhutan country fact sheet [PDF]

People-to-people links

Bhutanese diaspora communities, students and alumni in Australia play a vital role contributing to both our countries and bilateral relations. In the last decade, Australia has become home to Bhutan's largest community abroad, including 40,560 Bhutan-born residents at June 2025, according to the Australian Bureau of Statistics. There were 9,265 international students from Bhutan for the January-February 2026 period.

Development Program

In 2026–27, Australia will provide an estimated $3.9 million in Official Development Assistance to Bhutan. This includes an estimated $2.1 million in bilateral development assistance.

Australia Awards program has supported over 450 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.

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.