India, Bahrain explore ways to expand trade and investment
India and Bahrain also condemned all forms of terrorism and reiterated their commitment to combat cross-border terrorism
New Delhi: India and Bahrain on Monday discussed ways to expand and diversify two-way trade, including negotiations to conclude a comprehensive economic partnership agreement (CEPA) and a bilateral investment treaty.
The matter figured at a meeting of the bilateral High Joint Commission co-chaired by external affairs minister S Jaishankar and his Bahrain counterpart Abdullatif bin Rashid Alzayani, who also condemned all forms of terrorism and reiterated their commitment to combat cross-border terrorism.
Jaishankar said on social media that the meeting reviewed bilateral ties, with the focus on trade, security, defence, health and people-to-people. The two sides also explored opportunities in the space, fintech and cyber domains, he said.
Alzayani said at the meeting that India is one of Bahrain’s primary trading partners and both sides recognise that “economic cooperation and inter-dependence are essential for promoting peace, stability and shared prosperity”.
The two sides welcomed progress on the economic front amid the steady growth of bilateral trade, which was worth $1.64 billion in fiscal 2024-25. India is among Bahrain’s top five trade partners and both sides emphasised the potential for “growth and diversification of trade in areas such as electronics, petroleum products, processed foods, base metals and gems and jewellery”, according to a joint statement.
The two sides have begun negotiations on a CEPA and there has been progress in discussions for a bilateral investment treaty, the joint statement said. The two sides also agreed to begin negotiations on a double taxation avoidance agreement to help provide tax certainty and promote trade and investment.
Two-way investments between the countries are growing, and have increased 40% since 2019. From the first quarter of 2023 to the first quarter of 2024, there was a 15% increase in investments to the tune of $200 million from India to Bahrain, taking total two-way investments to $1.56 billion.
Both sides emphasised the fostering of closer cooperation between investment authorities and the private sector to diversify and expand trade and investment ties. They also noted the progress in establishing a joint working group on trade and investment.
Bahrain’s Economic Development Board (EDB) will support Indian investments across sectors such as manufacturing, logistics, ICT, tourism, financial services, education and healthcare.
The two sides will also work on enhancing collaboration in defence and security, the joint statement said. The visit of three Indian warships to Bahrain in September helped deepen engagement between the two sides and “reaffirmed India’s commitment to regional maritime security”.
The joint statement further said the two sides “unequivocally condemned terrorism, in all its forms and manifestations and reaffirmed strong commitment to combat terrorism, including cross-border terrorism”. Both sides “strongly condemned” the terror attack in Pahalgam in April and expressed solidarity with the victims and the families.
“The two sides also committed to combat the threat of terrorism through enhanced bilateral and multilateral cooperation, including intelligence sharing, capacity building and cyber security,” the joint statement said.
Bahrain was among the countries to which India sent delegations of MPs and experts to explain its decision to carry out military strikes against terrorist infrastructure in Pakistan in retaliation for the Pahalgam terror attack. The visit “underscored the two countries’ united stance against terrorism”, the joint statement said.
Jaishankar and Alzayani also discussed regional and international issues, and welcomed the “positive development” in relation to the situation in Gaza, which has “helped to ease geopolitical tensions in the Middle East”, the joint statement said. They stressed the importance of implementing the terms of US President Donald Trump’s peace plan by all parties.
“The recent adoption of the peace plan for Gaza presents a unique opportunity to advance this region. We urge all parties to exercise restraint, uphold the ceasefire and fully meet their obligations,” Alzayani said, adding that plans for greater connectivity between India and the broader region is “contingent upon achieving lasting and sustainable peace in the Middle East”.
As part of efforts to bolster people-to-people ties and tourism, India introduced electronic visas for Bahraini nationals across nine categories in July. Both sides also welcomed the contributions of the Indian diaspora in Bahrain, and the Indian side welcomed the decision of the king of Bahrain to pardon 248 Indian nationals in 2024 and 2025.
Bahrain is home to 332,000 Indians, and Jaishankar thanked the leadership of Bahrain for ensuring the welfare of the Indian community.
