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About three quarters of Bhutanese practice Buddhism and about one quarter practice Hinduism, although there are still a few priests and followers of the ancient Bon religion and there are a small number of Christians.

While the law provides for religious freedom, the Drukpa sect of the Kagyupa School, a branch of Mahayana Buddhism, is the state religion, and the law prohibits religious conversions. This sect incorporates both the ideology of the classical Buddhist scriptures and the indigenous pre-Buddhist animistic beliefs called Bon.

The Nyingmapa school of Mahayana Buddhism is also practiced, although primarily in the eastern regions.

Among Hindus, the Shaivite, Vaishnavite, Shakta, Ghanapath, Paurinic, and Vedic schools are all represented.