Balaji Bhaskaran appeared to cut his hand at the embassy in the country's capital Manama on October 3.
Bhaskaran was depressed about his relationship as the woman he loved planned to marry someone else, the Gulf Daily News reported today.
He had attempted suicide before, the report said.
An Indian embassy official said Bhaskaran was in a stable condition at Manama's Salmaniya Medical Complex.
"He is in a stable condition and his company is taking good care of him," said Ram Singh, the embassy's Labour and Community Welfare First Secretary.
"He will now receive psychiatric treatment at the hospital before he is discharged.
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