New Delhi: India and the Gulf Cooperation Council (GCC) formally launched negotiations for a comprehensive Free Trade Agreement (FTA) on Tuesday, marking a significant step in strengthening economic ties between the two parties.
The joint statement was signed in New Delhi by Union Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi, in the presence of senior officials and delegates from both sides.
Goyal described the signing as a significant milestone in India-GCC relations. He said the statement, along with the Terms of Reference signed earlier on February 5, lays a strong foundation for structured FTA negotiations.
He highlighted the deep-rooted historical and cultural connections between India and the GCC and expressed confidence that a broad-based and mutually beneficial trade pact would further strengthen these ties. Amid global economic uncertainties, he stressed that this is the right time to begin negotiations on a robust and forward-looking trade agreement.
Albudaiwi said the proposed India-GCC FTA will enhance trade and investment flows by creating greater predictability and certainty for businesses in both regions. He noted that the agreement will open new opportunities and deepen economic cooperation.
The GCC remains India’s largest trading partner bloc. In FY 2024-25, bilateral trade between India and the GCC reached USD 178.56 billion, with exports at USD 56.87 billion and imports at USD 121.68 billion. The GCC accounts for 15.42 percent of India’s total global trade, according to an official statement.
Over the past five years, trade between India and the GCC has grown steadily at an average annual rate of 15.3 percent.
India exports engineering goods, rice, textiles, machinery, and gems and jewellery to GCC countries. In return, it imports crude oil, LNG, petrochemicals, and precious metals such as gold. The GCC region, with a combined GDP of about USD 2.3 trillion and a population of 61.5 million in 2024, ranks among the world’s leading economic blocs.
It is also a major source of foreign direct investment, with cumulative GCC investments in India exceeding USD 31.14 billion as of September 2025.
Nearly 10 million Indians live and work in GCC countries, forming a strong bridge between the two regions. Their presence, along with the growing footprint of Indian companies in the Gulf, continues to reinforce bilateral ties.
Once finalized, the India-GCC FTA is expected to unlock new trade opportunities, diversify exports, and deepen economic integration. The agreement aims to create a stable and future-ready trade framework that benefits businesses, investors, and communities on both sides.
