The small Buddhist kingdom of Bhutan has become the target of a well-organized campaign, based in India, to stir up violent opposition to the country's moves to protect itself and its culture from illegal immigration.

Waged largely on behalf of Nepali and Indian citizens denied the right to settle in the small kingdom, where standards of living are relatively high and business opportunities plentiful, the militant campaign has been appealing to international human-rights groups to recognize it as a ''pro democracy'' movement.

In the last two months, reports from several recently formed Indian-based groups with names like the Bhutan People's Party or the Forum for Human Rights in Bhutan have asserted that mass arrests, torture and the suppression of minority rights are occurring under King Jigme Singye Wangchuck of Bhutan.

In August, the Hong Kong-based Asian Students Association held a news conference here to publicize the accusations and call for demonstrations. None of the student leaders speaking at the conference had visited Bhutan.