India, GCC Launch Official Talks for Comprehensive FTA

India and the Gulf Cooperation Council (GCC) have formally commenced negotiations for a comprehensive Free Trade Agreement (FTA), marking a significant milestone in bilateral economic relations. The Joint Statement was signed in New Delhi by Piyush Goyal, Union Minister of Commerce and Industry, and Jasem Mohamed Albudaiwi, Secretary General of the Gulf Cooperation Council, in the presence of senior officials from both sides.
Goyal described the signing, along with the recently concluded Terms of Reference, as a crucial step in deepening India’s engagement with GCC member states. He emphasized that the proposed FTA would build on long-standing historical, cultural, and commercial ties while unlocking new avenues for growth. At a time of global economic uncertainty, he noted, the move to initiate negotiations for a balanced and mutually beneficial trade pact is both timely and strategic.
Albudaiwi highlighted that the agreement would enhance trade and investment flows by providing greater predictability and regulatory certainty for businesses in both regions. The FTA is expected to further institutionalize economic cooperation and streamline market access.
The GCC is India’s largest trading partner bloc, with bilateral trade reaching USD 178.56 billion in FY 2024–25. India’s exports stood at USD 56.87 billion, while imports totaled USD 121.68 billion, accounting for over 15 percent of India’s global trade. Over the past five years, trade between the two sides has grown at an average annual rate of 15.3 percent.
Key Indian exports include engineering goods, rice, textiles, machinery, and gems and jewellery, while imports from the GCC largely comprise crude oil, LNG, petrochemicals, and gold. With a combined GDP of about USD 2.3 trillion and a population of 61.5 million, the GCC also remains a major source of investment and home to nearly ten million Indians.