India, Bahrain Fast-Track Trade, Investment Treaty Talks To Boost $1.6 Billion Bilateral Ties

India has now covered four of the six members of the Gulf Cooperation Council (GCC) as it commenced ambitious trade talks with the Kingdom of Bahrain. External Affairs Minister S Jaishankar on Monday (November 3, 2025) held extensive talks with his Bahraini counterpart Abdullatif bin Rashid Alzayani to further broad-base overall ties.

Both the sides have agreed to intensify efforts to expand and diversify two-way trade, which reached $1.64 billion in FY 2024–25, with negotiations advancing on a Comprehensive Economic Partnership Agreement (CEPA) and a Bilateral Investment Treaty (BIT).

The discussions took place during the High Joint Commission meeting co-chaired by EAM Jaishankar and Bahraini FM Alzayani. Both sides also condemned terrorism in all its forms and reaffirmed their commitment to combating cross-border terrorism, with Jaishankar supporting the Gaza peace plan.

India-Bahrain free trade pact: What’s the update?

Both countries are now negotiating a CEPA, which would serve as a comprehensive framework to enhance trade in goods, services, and investments. Progress has also been made on the Bilateral Investment Treaty, which aims to boost investor confidence and provide a stable framework for capital flow between the two nations.

In addition, the two sides have agreed to begin talks on a Double Taxation Avoidance Agreement (DTAA) to promote tax certainty and encourage greater trade and investment.

How are trade and investments expanding?

Bilateral trade has seen steady growth, positioning India among Bahrain’s top five trading partners. Key sectors identified for diversification include electronics, petroleum products, processed foods, base metals, and gems and jewellery. Two-way investments have grown by 40% since 2019, reaching $1.56 billion.

Between Q1 2023 and Q1 2024 alone, Indian investments in Bahrain rose 15% to $200 million, reflecting deepening economic engagement. To further strengthen this momentum, Bahrain’s Economic Development Board (EDB) will support Indian investments across manufacturing, logistics, ICT, tourism, financial services, education, and healthcare.

What did the leaders emphasise during the talks?

Foreign Minister Alzayani described India as one of Bahrain’s “primary trading partners”, stressing that economic cooperation and interdependence are key to peace, stability, and shared prosperity. Dr. S Jaishankar said the meeting reviewed all facets of bilateral ties, including trade, defence, health, space, fintech, and cybersecurity.

Beyond trade, defence and maritime security were also on the agenda. The recent visit of three Indian warships to Bahrain in September 2025 was noted as a key step in strengthening naval cooperation and reaffirming India’s commitment to regional maritime stability.

Both sides “unequivocally condemned terrorism”, including the Pahalgam terror attack in April, and pledged closer intelligence sharing, capacity building, and cybersecurity cooperation to counter the threat. Bahrain was among the nations that supported India’s recent counter-terrorism operations in Pakistan, signalling a united stance against extremism in the region.

How do regional dynamics shape India-Bahrain partnership?

Discussing the broader Middle East situation, the two ministers welcomed the “positive development” in Gaza following the implementation of US President Donald Trump’s peace plan, calling it a “unique opportunity to advance the region.”

They urged all parties to uphold the ceasefire and reaffirmed that regional connectivity and economic integration depend on lasting peace in the Middle East.

Further, India and Bahrain also agreed to enhance tourism and mobility, with India recently extending e-visa facilities to Bahraini nationals across nine categories. Both sides lauded the contributions of the 332,000-strong Indian diaspora in Bahrain, a community that continues to play a pivotal role in strengthening bilateral bonds.

With negotiations on CEPA and the investment treaty underway, both sides are laying the groundwork for a comprehensive trade and investment partnership that aligns with their shared vision of peace, prosperity, and connectivity across the Gulf and the Indian Ocean Region.

As the joint statement summed up, India and Bahrain are “committed to building a future defined by mutual growth, economic integration, and regional stability.”