The bilateral relations between the Himalayan Kingdom of Bhutan and the Republic of India have been traditionally close and both countries share a "special relationship", making Bhutan a protected state, but not a protectorate, of India. India remains influential over Bhutan's foreign policy, defence and commerce. Bhutan is the largest beneficiary of India's foreign aid.

The Treaty of Punakha was an agreement signed on 8 January 1910, at Punakha Dzong between the recently consolidated Kingdom of Bhutan and British India. The Treaty of Punakha is not a stand-alone document, but represents a modification of the Treaty of Sinchula of 1865, the prior working agreement between Bhutan and British India. As such, the Treaty of Punakha is an amendment whose text incorporates all other aspects of the Treaty of Sinchula by reference.