Just the size of Switzerland, Bhutan is a landlocked nation between two giants – China to the north and India to the south, east and west. Despite that fact, Bhutan has remained an independent, sovereign nation through out its history, never being colonized by any foreign powers.
Geopolitically, Bhutan acts as a buffer zone between India and China, the two emerging super powers in the world. Bhutan has a longstanding, friendly bilateral relation with India but no diplomatic relations with China. India is Bhutan biggest trade partner and also the biggest aid provider. In fact, much of the Bhutan’s is supported through grants and loans from India.