India and the Gulf Cooperation Council (GCC) have formally launched negotiations for a comprehensive Free Trade Agreement, marking a major step toward expanding economic and investment ties with one of India’s largest trading partner blocs.
The joint statement was signed on Tuesday, 24 February, in New Delhi by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi, formally initiating negotiations for a broad-based trade pact.
The agreement follows the signing of the Terms of Reference earlier this month on 5 February, which laid the groundwork for structured discussions on trade, investment, and economic cooperation between India and the six-nation GCC bloc.
The GCC – comprising Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain – is India’s largest trading partner bloc, with bilateral trade reaching $178.56 billion in FY 2024-25, accounting for 15.42 per cent of India’s global trade.
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India exported $56.87 billion worth of goods to GCC countries during the year, while imports stood at $121.68 billion, driven largely by crude oil, liquefied natural gas, petrochemicals, and precious metals.
Indian exports to the region include engineering goods, rice, textiles, machinery, and gems and jewellery, highlighting the GCC’s importance as a key destination for manufactured and value-added products.
According to officials, the proposed FTA is expected to enhance predictability and market access for businesses, expand trade volumes, strengthen supply chains, and attract greater investment flows between India and the Gulf region.
The GCC region, with a combined GDP of $2.3 trillion and a population of about 61.5 million, is also a major source of foreign direct investment in India, with cumulative investments exceeding $31.14 billion as of September 2025.
Nearly 10 million Indians live and work in GCC countries, forming one of the largest overseas Indian communities and playing a significant role in strengthening economic and cultural ties between the two regions.
The government said the FTA is expected to unlock the full potential of trade between India and the GCC upon signing and would be a force multiplier for global good, while facilitating the expansion and diversification of exports and strengthening economic integration between the two sides.
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