India and Bahrain have exchanged the terms of reference (ToR) to formally launch negotiations for a bilateral trade agreement, marking a key step toward deepening economic and commercial ties between the two countries.
Officials said the ToR outlines the scope, structure and objectives of the proposed pact, which is expected to cover trade in goods and services, investment promotion, customs cooperation and regulatory facilitation. The agreement aims to enhance market access, reduce trade barriers and strengthen supply chain linkages.
Bahrain, a key gateway to the Gulf region, is seen as a strategic partner for India’s exports, particularly in engineering goods, pharmaceuticals, food products and services. The trade pact discussions are also expected to explore cooperation in logistics, fintech, renewable energy and digital trade.
The move aligns with India’s broader strategy to expand trade engagement with the Gulf Cooperation Council (GCC) countries and diversify export markets. Both sides are expected to announce timelines for the first round of negotiations in the coming months.