New Delhi: India and the Gulf Cooperation Council formally began negotiations for the India–GCC FTA after signing the Terms of Reference in New Delhi on February 5.
The Terms of Reference were signed by Ajay Bhadoo, Additional Secretary and Chief Negotiator in the Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator of the GCC Secretariat. The signing took place at Vanijya Bhawan in the presence of Commerce and Industry Minister Piyush Goyal, Minister of State Jitin Prasada, and Commerce Secretary Rajesh Agrawal.
The document defines the scope and modalities of the India–GCC FTA. As a result, it will guide the negotiations between both sides. Officials said the agreement marked a formal launch of talks on a comprehensive free trade pact.
Speaking at the event, Piyush Goyal said the India–GCC FTA would act as a force multiplier for global good. He added that the agreement would bring predictability and stability to trade relations. Moreover, he said it would strengthen economic ties and support seamless flows of goods, services, and investments.
India–GCC FTA to deepen trade and investment ties
Goyal said the India–GCC FTA would also help expand employment opportunities. In addition, he said it would contribute to food and energy security across the region. He expressed confidence that the pact would take bilateral economic engagement to a higher level.
Dr. Raja Al Marzouqi said India and the GCC shared historic trade links. He noted that the signing of the Terms of Reference marked the start of negotiations towards a mutually beneficial agreement. He also said the FTA would reinforce ties amid global economic uncertainty.
During his visit, Dr. Al Marzouqi met Commerce Secretary Rajesh Agrawal. Their discussions focused on strengthening the overall economic partnership and cooperation in priority areas.
India’s trade with the GCC stood at USD 178.56 billion in FY 2024–25. This accounted for 15.42% of India’s total global trade. Over the past five years, bilateral trade grew at an average annual rate of 15.3%.
Key Indian exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery. Imports mainly include crude oil, LNG, petrochemicals, and precious metals. The GCC region has a population of 61.5 million and a GDP of USD 2.3 trillion. It is also a major source of foreign investment for India.
