Relations were established on 10 May 1984. His Majesty Sultan Hassanal Bolkiah made a state visit to India in September 1992. Since the discovery of oil in Brunei on 1929, there are a number of Indians been brought to Brunei and working in the oil sector and allied services and later as a teachers with some of them inter-married with local Bruneian peoples.
In economic, five memorandum of understanding has been signed by both countries such as exemption on visa, requirement for holders of diplomatic and official passports, defence cooperation, health and shipping and ports agreement. The main export of Brunei to India is crude oil, while India main export to Brunei are labours both on professionals and semi-skilled workers. Many Indian businessman also has monopoly business in Brunei especially on textiles and the majority of doctor in Brunei were come from India. In 2010 until 2011, the Indian exports to Brunei has increased from $34.22 million to $36.53 million whie Bruneian exports to India rose from $674 million to $1266 million, which mainly due to rise in petroleum off take by Indian petrochemical companies.