The bilateral relations between the Himalayan Kingdom of Bhutan and the Republic of India have been traditionally close . With independence in 1947 , India inherited the suzerainty over Bhutan enjoyed by the British Raj . Bhutan was one of the first to recognize India 's independence in 1947 and both nations fostered close relations , their importance augmented by the annexation of Tibet in 1950 by the People 's Republic of China and its border disputes with both Bhutan and India , which saw close ties with Nepal and Bhutan to be central to its `` Himalayan frontier '' security policy .