Located in the eastern Himalayas, Bhutan is bordered by China in the north and the Indian states of Arunachal Pradesh, Sikkim, Assam and West Bengal in the east, west and south. The country occupies an area of about 47,000km², while its population is almost 600,000, and its altitude ranges from 180m to 7550m above sea level.

The capital town of Thimphu lies in the western part of the country in a high valley of the Himalayas. It is a market centre for agricultural goods produced in the surrounding valley. Manufacturing includes food and wood products. Thimphu is connected to other parts of the country and to India, in the south, by a highway system. However, the town has no airport or railroad connections. The royal palace and one of the country's largest monasteries are located here. Formerly the winter capital (Punakha was the summer capital), Thimphu was made the permanent seat of government in 1962. Population (1997 estimate) 45,000. During winter (November to March) the minimum temperature drops to -10°C in the Thimphu valley. Summers are very pleasant, while the rainy season is July-September.

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