Geography, trade and cultural connections have fostered India and Bahrain’s relationship for more than 5,000 years, and the kingdom has become a beloved home away from home for more than 300,000 nationals from the Southeast Asian country.
Today, India is marking its 77th Republic Day, commemorating the adoption of its constitution and formally becoming a republic – its first bold step beyond its colonial past.
In celebration of this occasion and the 53rd anniversary of the opening of the first Indian Embassy in Bahrain, the GDN is taking a closer look at bilateral ties between the two countries.
History
Bahrain and India share a 5,000-year-long relationship that long predates modern nation states, rooted in trade across the Arabian Sea, since the Dilmun and Indus Valley period.
Archaeological evidence links ancient Bahrain during its Dilmun period, with the Indus Valley civilisation as early as 3,000 BCE.
Dilmun appears in Mesopotamian texts as a key trading hub, exporting copper, dates and pearls while acting as a transit point for goods moving between the Indian subcontinent and Mesopotamia.
This early maritime network laid the foundations for centuries of economic and cultural exchange.
From antiquity through the mediaeval period, Indian merchants were a familiar presence in Bahrain’s ports.
Trade in textiles, spices, timber and rice flowed westwards from India, while Bahrain supplied pearls, which became especially prized in Indian markets.
Traders, in particular from the Thattai Hindu community, played a significant role in the Gulf’s commercial life, often settling for long periods and forming merchant communities.
These exchanges went beyond purely economic, with culture, language and social customs travelling across the seas, contributing to today’s cosmopolitan atmosphere in Bahrain and much of the GCC.
The Indian rupee was widely used in Bahrain until the mid 20th century, when it was replaced with the Gulf Rupee, and in 1965, the Bahraini dinar.
To this day, many traders, especially in the Manama Suq, refer to 100fils as ‘ek rupiah’ (one rupee).
Over the years, Indian labour and expertise have become central to sectors such as trade, construction, healthcare, culture, finance and oil, with schools, businesses and social institutions which catered to the community becoming part of Bahrain’s urban landscape.
The oldest of these community institutions is the 200-year-old Shri Krishna Temple in Manama, visited in 2019 by Indian Prime Minister Narendra Modi, who launched a $4.2 million-renovation plan, during his historic trip to the kingdom.
Trade and Tourism
In the modern era, Bahrain and India have maintained close ties through diplomacy, trade and people-to-people links.
Over the years, this mutually enriching partnership has grown, with bilateral trade reaching $1.64 billion in 2024-25, and two-way investments stood at more than $2bn in the first quarter of 2025, according to the Indian Embassy.
Today, India remains among the kingdom’s top 10 trading partners and its fifth largest investor. On the flip side, the main sectors of Bahrain’s investment into India are real estate, information technology and engineering, and is valued at $185m.
As of October 2020, there were 38 Indian commercial agencies, 32 branches of prominent Indian companies and more than 7,500 Indian-owned and joint venture companies registered in Bahrain.
According to the Indian embassy, the number of Indian tourists to Bahrain increased by 44pc between 2022 and 2023, crossing a million tourist arrivals.
Bahrain is also home to 332,000 Indians from Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Punjab, Rajasthan, UP, Maharashtra, Goa and Gujarat.
Strategic Ties
In November last year, the Fifth Bahrain-India High Joint Commission Meeting was held in New Delhi, co-chaired by Bahrain Foreign Minister Dr Abdullatif Al Zayani, and Indian External Affairs Minister Dr Subrahmanyam Jaishankar.
During the meeting, Dr Jaishankar underscored India’s keenness to strengthen co-operation with Bahrain, especially in security, health, culture, education, tourism, and space sciences, among other vital areas of mutual interest.
The meeting also reviewed efforts to enhance political and diplomatic co-operation between the two nations, especially throughout Bahrain’s 2026-27 term as a non-permanent member of the UN Security Council.
The two sides also discussed regional and international developments and their impact on regional peace and stability, including the Palestinian cause and ongoing efforts to expedite humanitarian aid delivery in Gaza, and advance efforts towards achieving peace in the region.
The sixth session will be held in Bahrain this year.
naman@gdnmedia.bh
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