No, Indian citizens do not need a visa to visit Bhutan. But you need an ‘Entry Permit’ that gives you access to Paro and Thimphu and is issued by the Bhutanese Immigration Office's outpost at the border crossings. To go beyond these two cities, you need a ‘Special Area Permit’ from the immigration office in Thimphu. Do carry a photo id and a photocopy of your passport along with two latest photos.