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India-Bahrain Economic Boost: New Investment Treaty and CEPA Talks Advance

India and Bahrain have taken significant steps to strengthen their economic partnership. Both countries agreed to advance talks on a Bilateral Investment Treaty and begin negotiations for a Comprehensive Economic Partnership Agreement. They also decided to start discussions for a Double Taxation Avoidance Agreement to boost investor confidence. The bilateral trade between the two nations has reached USD 1.64 billion in the current financial year.

Key Points: India Bahrain Advance Investment Treaty CEPA Economic Talks

  • India and Bahrain agree to advance Bilateral Investment Treaty negotiations
  • Both countries to begin Comprehensive Economic Partnership Agreement talks
  • New Double Taxation Avoidance Agreement to provide tax certainty
  • Bilateral trade reaches USD 1.64 billion in 2024-25 financial year
3 min read

India, Bahrain advance talks on Bilateral Investment Treaty and CEPA to boost economic ties: MEA

India and Bahrain strengthen economic ties with advancing Bilateral Investment Treaty, CEPA negotiations, and new Double Taxation Agreement to boost trade and investment.

"Both sides welcomed the progress made in ongoing negotiations for a Bilateral Investment Treaty - Ministry of External Affairs"

New Delhi, November 3

India and Bahrain took a major step forward in their economic partnership by agreeing to advance talks on a Bilateral Investment Treaty and begin negotiations for a Comprehensive Economic Partnership Agreement (CEPA).

The discussions were held on Monday during the Fifth High Joint Commission (HJC) meeting held in New Delhi, co-chaired by External Affairs Minister S Jaishankar and his Bahrain counterpart Abdullatif bin Rashid Alzayani. "It was agreed that the sixth HJC would be held in Bahrain. The dates would be finalised through diplomatic channels," according to a release from the Ministry of External Affairs.

Discussions covered the progress made towards setting up a Joint Working Group on Trade and Investment and commencing negotiations for the CEPA. Both sides welcomed the progress made in ongoing negotiations for a Bilateral Investment Treaty, it said.

In addition, India and Bahrain agreed to start negotiations for a Double Taxation Avoidance Agreement (DTAA) to provide tax certainty and boost investor confidence.

The two ministers reviewed the progress since their last meeting in Bahrain in December 2024 and expressed satisfaction with the growing ties between the two countries. They discussed ways to strengthen cooperation across various areas, including trade, defence, security, investment, health, space, fintech, and culture.

Both sides emphasised the need to diversify trade in areas such as electronics, petroleum products, processed foods, base metals, and jewellery. The bilateral trade between India and Bahrain has reached USD 1.64 billion in the 2024-25 financial year, with India ranking among Bahrain's top five trading partners.

They also agreed to foster closer collaboration between investment authorities and the private sector. The Bahrain Economic Development Board reaffirmed its commitment to supporting Indian investments in various sectors, including manufacturing, logistics, ICT, tourism, and healthcare. The two sides noted Bahrain's sovereign wealth fund, Mumtalakat's interest in investing in India's fintech, infrastructure, and renewable energy sectors.

The meeting also reviewed cooperation in healthcare, with both countries highlighting digital health, medical research, and affordable healthcare as key areas for joint work. On space collaboration, officials said both sides were finalising a draft agreement between Bahrain's Space Agency and New Space India Limited to enhance cooperation in the sector.

India's introduction of e-visas for Bahraini nationals in July 2025 and Bahrain's decision to pardon 248 Indian nationals were noted as important steps in strengthening goodwill.

India congratulated Bahrain on its election as a non-permanent member of the UN Security Council for the 2026-27 term, and both countries agreed to coordinate their positions on global platforms.

- ANI

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Reader Comments

R
Rohit P
$1.64 billion trade is good but we can do much better. Hope these agreements focus on manufacturing and technology transfer, not just raw material exports. Indian companies should get fair market access in Bahrain.
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Arjun K
The space collaboration and fintech partnerships are particularly exciting! Bahrain's interest in our renewable energy sector shows how much India's capabilities have grown. This is strategic diversification beyond traditional sectors.
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Sarah B
As someone working in the jewellery export business, this is very promising news. Bahrain's market has good potential for Indian jewellery if we can get better tariff terms through CEPA. The DTAA will also help with tax planning for businesses.
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Vikram M
Good to see the human aspect with the pardon of 248 Indian nationals and e-visas. These small gestures build strong diplomatic relationships. Hope the agreements benefit ordinary people through job creation and better services.
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Michael C
While this is positive, I hope our negotiators ensure these agreements protect Indian interests properly. Sometimes we rush into partnerships without adequate safeguards for our domestic industries. The details matter more than the headlines.
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Ananya R
The healthcare collaboration is much needed! Digital health and affordable healthcare partnerships can benefit both countries. Hope this leads to better medical facilities and knowledge

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