Bhutan , officially the Kingdom of Bhutan , is a landlocked South Asian country situated in the Eastern Himalayas, between China in the north and India in the south. A mountainous country, Bhutan is known locally as "Druk Yul" or "Land of the Thunder Dragon", a name reflecting the cultural heritage of the country. The exonym Bhutan likely derives from the Prakrit hybrid word Bhŏṭṭaṃta, a name referring to its geographical proximity to Tibet .[better source needed] Nepal and Bangladesh are located near Bhutan but do not share a border with it. The country has a population of over 727,145 and territory of 38,394 square kilometres and ranks 133rd in land area and 160th in population. Bhutan is a constitutional monarchy with a king as the head of state and a prime minister as the head of government. Vajrayana Buddhism is the state religion and the Je Khenpo is the head of the state religion.