India, Bahrain exchange draft terms to begin trade pact talks

New Delhi: India and Bahrain have exchanged draft terms of reference (ToR) for initiation of Comprehensive Economic Partnership Agreement (CEPA) negotiations, the commerce and industry ministry said, adding that the establishment of the India-Bahrain Joint Working Group on Trade and Investment is under process. The terms of reference set the framework and scope of the negotiations for the proposed trade pact.

"India has shared its JWG composition at joint secretary level," the ministry said in a statement.

It also said that discussions between India and the Gulf Cooperation Council (GCC) are ongoing to finalise the ToR for a free trade pact and the terms with Qatar have been "substantially finalised".


Free Trade Agreement (FTA) talks between India and the GCC began with the signing of a framework agreement in 2004, followed by two rounds in 2006 and 2008. The GCC paused negotiations globally in 2011. Talks resumed after the GCC Secretary General's visit to India in November 2022.

A revised ToR was shared by GCC in October 2023, and both sides have since exchanged updated versions. Discussions to finalize the ToR are ongoing," it added.

Talks with the various West Asian countries on trade agreements are on even as on December 18, India and Oman signed a CEPA, which will provide duty free access to 98% of India's exports including textiles, farm and leather goods in Oman, and give an additional $2 billion boost to exports in the next 2-3 years.

The pact would help Indian exporters, reeling under the impact of 50% tariffs imposed by the Trump administration on Indian goods, to diversify shipments in the West Asia region, a gateway to Africa and Europe.

Oman has offered to ease norms for Indian companies operating in the Gulf country under the CEPA allowing them to employ up to 50% of their total staff from their India office.