New Delhi: India and the Gulf Cooperation Council (GCC) on Thursday signed the Terms of Reference (ToR) for negotiations on a proposed Free Trade Agreement (FTA), marking a major step towards deepening economic and trade ties between the two sides.
The ToR was signed at Vanijya Bhawan, New Delhi, formally initiating discussions for a comprehensive trade pact between India and the six-nation Gulf bloc.
ToR Signing Formalises India-GCC FTA Talks
The ToR was signed by Ajay Bhadoo, Additional Secretary and Chief Negotiator at the Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator of the GCC Secretariat General.
The signing ceremony was held in the presence of Union Commerce and Industry Minister Piyush Goyal, Minister of State Jitin Prasada, and Commerce Secretary Rajesh Agrawal.
The document will guide the scope, structure, and modalities of the India-GCC FTA negotiations.
Read also: India, EU Conclude Landmark Free Trade Agreement, Ushering in a New Era of Strategic Partnership
FTA to Act as a “Force Multiplier,” Says Piyush Goyal
Addressing the event, Commerce Minister Piyush Goyal said the proposed FTA would serve as a “force multiplier for the global good”, bringing predictability and stability to trade relations between India and the GCC.
He said the agreement is expected to:
- Enable seamless flow of goods and services
- Boost investments and employment
- Strengthen food and energy security
- Enhance overall economic cooperation
GCC Highlights Historic Trade Ties with India
Dr. Raja Al Marzouqi described the signing of the ToR as the formal commencement of FTA negotiations and highlighted the long-standing historical and commercial ties between India and GCC countries.
He noted that the agreement would further reinforce economic relations, especially amid global economic uncertainties. During his visit, Al Marzouqi also held discussions with the Commerce Secretary on expanding cooperation in areas of mutual interest.
India-GCC Trade: Key Numbers and Growth
According to the Ministry of Commerce & Industry, India’s trade with the GCC stood at USD 178.56 billion in FY 2024–25, accounting for 15.42% of India’s total global trade.
Over the past five years, bilateral trade has grown at an average annual rate of 15.3%.
India’s major exports to the GCC include:
- Engineering goods
- Rice and textiles
- Machinery
- Gems and jewellery
Key imports from the GCC include:
- Crude oil and LNG
- Petrochemicals
- Gold and other precious metals
Strong Investment and Diaspora Links
The GCC is a major source of foreign direct investment (FDI) for India, with cumulative investments exceeding USD 31.14 billion as of September 2025.
Nearly 10 million Indians live and work in GCC countries, strengthening people-to-people ties alongside the strong presence of Indian businesses across the region.
About the Gulf Cooperation Council (GCC)
The Gulf Cooperation Council (GCC) comprises six countries—Saudi Arabia, UAE, Kuwait, Qatar, Oman, and Bahrain. The bloc represents a combined market of around 61.5 million people with a GDP of approximately USD 2.3 trillion, ranking ninth globally, and plays a crucial role in global energy and trade markets.
Read also: India and Oman Sign Landmark Free Trade Agreement to Boost Bilateral Trade and Strategic Partnership
