Bhutan's population is concentrated in the towns, the southern plains, and in valleys where agricultural resources are abundant. Over half of the people live in the central highlands of Bhutan, and 40 percent live in the southern plains bordering India. The remaining 10 percent are dispersed in the northern mountains and in the eastern terrains. Ninety-two percent of the population live in rural areas.
Ngalungs / Ngalongs or Ngalops
The Ngalung or Ngalop (often called Drukpa) ethnic group live in the north western region and speak the Dzongkha language. Their ancestors migrated from Tibet. They are called Drukpas as they follow the Drukpa Kargyupa school of Mahayana Buddhism. The King and royal family belong to this group.
Sharchops
The second ethnic group is called Sharchop, who inhabit the eastern and central regions and practice the Nyingmapa sect of Mahayana Buddhism. They belong to Tibeto-Burman ancestry. They speak Sharchopkha, Tsangla, Kurteop, Kheng, and the Brokpa dialects. Their ancestry can be traced to the tribes of northern Burma and northeast India.
Lhotshampas of Nepali Origin
The third ethnic group is called Lhotshampas (meaning Southern Bhutanese) and they are of Nepali origin. They live in six southern foothill districts, speak Nepali language, practice mostly Hinduism, and migrated from Nepal, Darjeeling and Sikkim in India.