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No, Indian nationals can travel to Bhutan with a valid government ID, like a Voter ID card. As it is one of our closest neighboring countries with a beautiful landscape, Bhutan is a passport-free country for Indian nationals to visit due to the Treaty of Peace and Friendship between India and Bhutan, signed on August 9, 1949.
For the people who want to travel to Bhutan for vacation purposes, they can take some of the important documents, which are a copy of your Indian passport, your Vter ID card issued by the Election Commission of India, for the minors, birth certificate, and school identity card, and your 2 passport size coloured photos along with your accomodation details.
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To travel in Bhutan for Indian citizens, you don't need a passport or visa, but you must get an entry permit, which is compulsory for all Indian nationals. You can get this entry permit from the Bhutan immigration counter when you arrive.