India-Bhutan Foundation was established in August 2003 during the visit of the present King (then Crown Prince) to India with the aim of enhancing people to people exchanges in focus areas like education, culture and environment protection. Ambassador of Bhutan and India are the Co-Chairpersons of the Foundation. The Royal Government of Bhutan and the Government of India have contributed Rs. 5 Crore each as main corpus fund to IBF and the entire amount of Rs.10 Crores has been kept in a fixed deposit in Bhutan. Interest earned from the fixed deposit is used for financing proposals received from Bhutanese/Indian citizens and Non Governmental Organisations on studies, research, and similar activities, exchanges of a cultural/educational/scientific nature, programmes and activities such as seminars, work shops on subjects of common mutual interest  that can help in achieving the objectives of the Foundation.

The 17th Board of Directors Meeting was held in Guwahati, India on 3rd December, 2017. The meeting considered 34 proposals, out of which 13 proposals were approved by the Board for implementation.