Bhutan's significance in India's foreign policy has been underscored since the historic Friendship Treaty of 1949, which has its roots in earlier treaties dating back to 1865 and 1910 between the British Indian Government and Bhutan. The departure of the British from the Indian subcontinent left Bhutan with a critical choice: to either assume a subordinate status vis-à-vis Tibet or embrace sovereign independence. Bhutan chose the latter, effectively abrogating the India-Bhutan Treaty of 1910 with the British Indian Government. The August 1949 treaty between India and Bhutan conferred substantial influence upon India in managing Bhutan's foreign policy. Notably, Article 2 of this treaty stipulated that "the government of India would undertake to exercise no interference in the internal administration of Bhutan. On its part, the Government of Bhutan agrees to be guided by the advice of the Government of Indian, regarding its external relations." This treaty became the cornerstone of India and Bhutan's shared security interests. India's commitment to Bhutan's security was articulated by Jawaharlal Nehru in November 1959 when he declared that "any aggression against Bhutan... would be regarded as an aggression against India."

However, the 21st century has ushered in new dynamics in Bhutan's economy and politics, influenced by India's "carrot-and-stick" policy and China's increasing presence in this landlocked nation. These developments have given rise to a new generation of Bhutanese youth who pose unique challenges from both security and strategic perspectives for India, Bhutan, and South Asia as a whole. Medha Bist, an analyst at the Institute of Peace and Conflict Studies (IPCS), noted that "Given that fifty percent of the population is young and economically Bhutan seems to be opening up, a new generation of Bhutanese youth seems to be emerging. The key to India-Bhutan relations would depend on the engagement and experience of this age group."