Bahrain India Relations: Trade, Agreements, Recent Developments - UPSC Notes

Relations between India and Kingdom of Bahrain highlight their commitment to joint development and regional peace. Located in the Middle East / Asia, Kingdom of Bahrain serves as a vital player in global geopolitical and security frameworks. The year 1971 marked the start of diplomatic relations between India and Kingdom of Bahrain, fostering long-term cooperation. India and Kingdom of Bahrain preserve a Embassies in New Delhi and Manama, ensuring robust bilateral interaction through embassies in each others capitals. Indias ties with Kingdom of Bahrain are of Key Gulf partner, maritime security, large indian_diaspora, often involving defense cooperation, economic collaboration, cultural exchanges, and shared global security objectives. 

• The cooperation between India and Kingdom of Bahrain thrives in Trade, investment, energy, defense, security, space, health, culture like defense, nuclear energy, trade, space exploration, oil and gas, cybersecurity, culture, and education. 
• Significant pacts covering areas like Economic & Technical Cooperation (1981), Air Services (2000), Extradition Treaty (2004), MLAT Criminal Matters (2004), Taxation Information Exchange (2012), Joint High Commission (2014), Combating Terrorism (2015), Renewable Energy (2018), Healthcare (2018), , Cultural Exchange (2019) have been established between India and Kingdom of Bahrain to strengthen collaboration. 
• India and Kingdom of Bahrain have reached a trade volume of USD 1738 billion (2023-24), highlighting the deepening of their economic ties. 
• India exports Agri products, machinery, engineering goods, medicaments, jewellery, vehicles to Kingdom of Bahrain as part of their growing trade partnership and long-standing economic cooperation. 
• The trade between India and Kingdom of Bahrain largely includes imports of Crude oil, mineral fuels, urea, methanol, aluminium, iron. 

India’s engagement with Kingdom of Bahrain in IT, FinTech, higher education, startups, upskilling supports digital transformation and academic excellence. Focused on Bahrain India Relations, this article explores Strategic Summits, Diaspora Remittances, and Import-Export Trends to assist candidates in enhancing their GS Paper 2 and PSIR notes. 

Bahrain India Relations Establishment of Diplomatic Ties

Ancient trade (Dilmun/Indus Valley), Rupee was legal tender laid the foundation for the present-day relationship between India and Kingdom of Bahrain. Leaders from both India and Kingdom of Bahrain have made impactful visits in the past, including Bahraini King (2014), Indian PM (2019), enhancing bilateral dialogue. 

• Ancient links, post-independence ties, recent strategic partnership deepening illustrate the progression of India’s engagement with Kingdom of Bahrain, from early ties to strategic collaboration.

Checkout: Daily UPSC Current Affairs for your upcoming exam and get thorough with detailed Insights, Trends and Latest Developments for UPSC CSE Exam

Strategic & Political Cooperation of Bahrain India Relations

The India-Kingdom of Bahrain relationship is of Key Gulf partner, maritime security, large indian_diaspora, with defense collaboration, economic partnerships, cultural interactions, and aligned global security priorities forming key components. 

• Maritime security, counter-piracy, joint exercises, MoU discussions between India and Kingdom of Bahrain promotes regional security through joint exercises, strategic arms deals, and maritime partnerships. 
• India and Kingdom of Bahrain work together through Agreement (2015), security dialogue, combating transnational crime, maintaining cooperation by sharing information and tracking terrorist threats. 
• Cooperation in IT, FinTech, digital payments, data centres promotes digital cooperation between India and Kingdom of Bahrain, enhancing mutual trust, cybersecurity, and technological progress. 
• Security cooperation between India and Kingdom of Bahrain has grown through UN, NAM, GCC, Arab League, ISA, cooperation on global issues, helping resolve global issues and drive progress. 
• Hydrocarbons, renewable energy (solar, wind, green hydrogen) plays a key role in India–Kingdom of Bahrain ties, facilitating joint ventures in both renewable and conventional energy sectors. 
• India and Kingdom of Bahrain are pushing the frontiers of MoU (2019), nano-satellite, ground station, capacity building, with efforts centered on research partnerships, technology sharing, and collaborative missions. 
• India and Kingdom of Bahrain have forged a partnership in areas such as Air Service Agreement (2000), growing two-way tourism to enhance people-to-people exchanges and travel opportunities. 
• India and Kingdom of Bahrain are enhancing economic cooperation through Tax Information Exchange Agreement (2012), DTAA discussions ongoing designed to avoid double taxation and support trade.

Download UPSC Previous Year Question Paper PDFs for UPSC Prelims & Mains!

Trade and Economic Overview of Bahrain India Relations

• To enhance mutual cooperation, India and Kingdom of Bahrain have formalized several agreements, particularly in the realm of Economic & Technical Cooperation (1981), Air Services (2000), Extradition Treaty (2004), MLAT Criminal Matters (2004), Taxation Information Exchange (2012), Joint High Commission (2014), Combating Terrorism (2015), Renewable Energy (2018), Healthcare (2018), , Cultural Exchange (2019). 
• With a trade volume of USD 1738 billion (2023-24), India and Kingdom of Bahrain continue to strengthen their bilateral economic relations. 
• Investment flows feature Indian investment in Bahrain: ~USD 15 billion, Bahrain to India: ~USD 185 million, along with major co-financed initiatives supporting economic cooperation. 
• Formal platforms like High Joint Commission (HJC), Foreign Office Consultations, usually held once or twice a year, help strengthen and review trade and investment cooperation between India and its partner nation. 
• Kingdom of Bahrain registered export shipments to India amounting to USD 82944 million (2023-24). 
• India’s export relationship with Kingdom of Bahrain is marked by the regular supply of Agri products, machinery, engineering goods, medicaments, jewellery, vehicles across various industries. 

Kingdom of Bahrains imports from India totaled USD 90942 million (2023-24) as per the latest figures. A number of Indian enterprises, including Over 7500 Indian-owned/joint venture companies, financial services, real estate, are contributing to the economy of Kingdom of Bahrain.

Socio-Cultural & Diaspora Engagement

The strong influence of the diaspora contributes significantly to the partnership between India and Kingdom of Bahrain, bolstering Vital economic contribution, cultural bridge, goodwill ambassadors. India and its partner country connect through CEP (2019-2023, renewal discussed), festivals, art, yoga, Shreenathji temple that help people understand each other’s culture and lifestyle. Through Indian schools in Bahrain, university collaborations, student exchanges, both countries are exchanging ideas and growing in the field of learning. 

• The Indian-origin population in Kingdom of Bahrain helps solidify the cultural and economic ties between the two countries. 
• India and Kingdom of Bahrain strategically deploy Defence cooperation, cultural diplomacy, vibrant diaspora, 'Little India' to bolster their international standing and maximize their global impact.
• Strong diplomatic and economic ties exist between India and Kingdom of Bahrain, with Significant, but specific aggregate figure not readily available being a key factor in their economic success.

Bahrain India Relations Recent Developments

India and Kingdom of Bahrain regularly engage through Indian EAM (Dec 2024), Bahraini Foreign Minister (Dec 2024), focusing on trade, investment, and regional stability. With Negotiations for Bilateral Investment Treaty ongoing (2024), both nations have either reaffirmed existing frameworks or initiated new areas of discussion. 

• India and Kingdom of Bahrain continue to expand ties through A Cultural Exchange Programme 2019-2023 was signed between India and Bahrain during PM's visit to Bahrain in 2019, including in social and economic sectors. 
• Discussions between India and Kingdom of Bahrain often emphasize expanding Enhanced cooperation in new tech, energy, trade, defense.

Get to Know the detailed UPSC Syllabus for IAS Prelims & Mains Exam!

UPSC Relevance of Bahrain India Relations

• Data on trade volumes, diaspora statistics, and agreements are useful for objective-type questions.
• India–Kingdom of Bahrain relations are integral to GS Paper 2 (International Relations) under bilateral, regional, and global groupings.
• Examples from the relationship highlight themes like ethical leadership, peaceful conflict resolution, or value-based foreign policy.
• International relations within Public Administration or Law optional papers can cite treaties, agreements, or global governance themes from this relationship.