Bhutan, kingdom on the southern slopes of the eastern Himalayas, between Tibet on the north and Bangladesh and India on the south. It is extremely mountainous, falling from 24,000 ft (7,315 m) on the northern border to 600 ft (183 m) on the frontier with India.
Agriculture, limited to a few areas, is backward; terraced rice cultivation might be extended, but the cultivators lack capital. Corn, potatoes, wheat, millet, and buckwheat are grown. Fine handicrafts include wood carving, basketry, and swords and daggers with elaborately chased silver engravings. The country is slowly changing from an isolated barter system into a transitional market economy. Buddhism of the Tibetan Mahayana type mingles with propitiation of spirits.