India, Bahrain begin trade agreement talks: What's on agenda?
What's the story
India and Bahrain have officially started talks for a major trade agreement. The move is aimed at simplifying business transactions between the two countries. India's External Affairs Minister S Jaishankar held talks with his Bahraini counterpart Abdullatif bin Rashid Alzayani to further expand overall ties. The recent meeting also focused on agreements like double taxation avoidance, which would make cross-border operations easier and less complicated for companies.
Economic partnership
Gulf nation hosts nearly 332,000 Indians
Bahrain is a key West Asian partner for India, with trade between them having reached $1.64 billion in 2024-25. The Gulf nation hosts nearly 332,000 Indians, who make up nearly a quarter of its total population of 1.5 million. India is among Bahrain's top five trading partners and the two countries are looking at new agreements covering investment and sectors like petroleum.
Strategic collaboration
Expansion of cooperation in defense, fintech, health
India and Bahrain are also looking to expand their cooperation in defense, fintech, and health. This is part of a larger effort to strengthen bilateral ties amid regional conflicts and geopolitical challenges. Jaishankar reaffirmed India's support for the Gaza peace plan during his meeting with Alzayani. They also discussed ways to enhance bilateral cooperation across various sectors including space and culture.
Trade diversification
Commitment to further growth and diversification of trade
The two countries have also committed to further growth and diversification of trade in sectors such as electronics, petroleum, processed foods, base metals, and gems and jewelry. A joint statement issued after the talks noted that both sides welcomed the progress made in establishing a joint working group on trade and investment. They also expressed optimism for future collaboration in defense and security matters.