Big trade breakthrough! India and GCC kick off mega FTA talks

The ToR was signed on February 5 at Vanijya Bhawan in New Delhi by Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator at the Secretariat General of the GCC.

The signing ceremony was held in the presence of Union Minister of Commerce and Industry Piyush Goyal, Minister of State for Commerce and Industry Jitin Prasada, and Commerce Secretary Rajesh Agrawal.

The Terms of Reference will define the scope and modalities of the proposed agreement and guide negotiations for the India–GCC FTA.

Speaking on the occasion, Piyush Goyal said the agreement would act as a “force multiplier for the global good” and bring greater predictability and stability to bilateral trade relations.

He expressed confidence that the FTA would enable the seamless flow of goods and services, attract investments, expand employment opportunities, and strengthen food and energy security in the region, thereby elevating economic ties between the two sides.

India and the six-nation Gulf Cooperation Council (GCC), including Saudi Arabia and the United Arab Emirates, have signed the Terms of Reference (ToR) for the proposed India–GCC Free Trade Agreement (FTA), marking the formal launch of negotiations.Dr. Al Marzouqi highlighted the longstanding trade relationship between India and the GCC and said the signing of the ToR marks the commencement of negotiations toward a mutually beneficial agreement. He noted that the FTA would further reinforce relations, particularly amid prevailing global uncertainties.

During his visit, Al Marzouqi also met Commerce Secretary Rajesh Agrawal to discuss ways to deepen the overall economic partnership and advance cooperation in areas of mutual interest.

The proposed India–GCC FTA is expected to unlock significant trade potential with a region that shares deep historical and commercial ties with India.

India’s total trade with the GCC stood at USD 178.56 billion in FY 2024–25, comprising exports worth USD 56.87 billion and imports valued at USD 121.68 billion. The GCC accounts for 15.42 per cent of India’s global trade. Over the past five years, bilateral trade has grown at an average annual rate of 15.3 per cent.

Key Indian exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery. Major imports from the region consist of crude oil, liquefied natural gas (LNG), petrochemicals, and precious metals such as gold.

Collectively, the GCC countries represent a market of approximately 61.5 million people (2024) and have a combined GDP of USD 2.3 trillion at current prices, ranking ninth globally.

The GCC region is also a significant source of foreign direct investment (FDI) for India, with cumulative investments exceeding USD 31.14 billion as of September 2025.

In addition, nearly 10 million members of the Indian diaspora reside in GCC countries, further strengthening people-to-people and economic ties.