The Embassy of India in Thimphu functions from a sprawling 67-acre complex also called the India House Estate. Initially designated as Special Office of India in Bhutan, a resident Mission was opened in Thimphu in January 1968. The Special Office of India was later re-designated as Office of the Representative of India and, subsequently to Embassy of India in 1978.

At the behest of His Majesty, the late King Jigme Dorji Wangchuck, the Royal Government of Bhutan allotted 67 acres land for the Indian Embassy at its present location.  Mrs. Indira Gandhi, the then Prime Minister of India, laid the Foundation stone of the India House Estate in May 1968. The Embassy shifted at its present location in 1980. The Chancery building was inaugurated in April 1980 by Her Majesty the Queen Mother of Bhutan. Her Majesty presented a large number of rose saplings for the Padmaja Naidu Rose Garden in front of the Chancery building.

 The Estate has been developed keeping in view the uniquely undisturbed natural environment of Thimphu. Special attention has been given to landscaping and aesthetic harmony with the surroundings. The Estate has excellent sports facilities such as table tennis, indoor badminton court, tennis courts, football/cricket ground, etc.