New Delhi, Feb 5 (IANS) India and the Gulf Cooperation Council on Thursday signed the Terms of Reference to guide the negotiations for the India-GCC Free Trade Agreement (FTA)
The Terms of Reference (ToR), which will define the scope and modalities of the talks, were signed between Additional Secretary and Chief Negotiator, Department of Commerce, Ajay Bhadoo, and the GCC Secretariat General’s Chief Negotiator, Dr Raja Al Marzouqi, at the Vanijya Bhawan in the presence of Commerce and Industry Minister Piyush Goyal.
During the signing ceremony, the Commerce Minister emphasised that the FTA will be a force multiplier for the global good. He underlined that the FTA will bring predictability and stability, taking the relationship between the two sides to greater heights. He exuded confidence that FTA will enable the seamless flow of goods and services and attract investments while expanding job opportunities and fostering food and energy security for the region, elevating our deep economic ties.
Dr Al Marzouqi underscored that the GCC and India have shared historic trade relations and that the signing of ToRs marks the commencement of negotiations towards a mutually beneficial FTA. He highlighted that the FTA will further reinforce relations between India and GCC, particularly in the context of prevailing global uncertainties.
During his visit, Dr Al Marzouqi also held a meeting with Commerce Secretary Rajesh Agrawal. The discussion focused on bolstering the overall economic partnership between India and the GCC and advancing cooperation in the areas of mutual interest.
The India–GCC FTA holds significant potential to unlock and expand trade with an important region, with which India has longstanding historical ties in trade and commerce. India’s trade with GCC stood at $178.56 billion (Exports: $56.87 billion; Imports: $121.68 billion) in FY 2024-25, accounting for 15.42 per cent of India’s global trade. In the last five years, India’s trade with the GCC has expanded steadily, registering an annual average growth rate of 15.3 per cent.
Key exports from India to GCC include engineering goods, rice, textiles, machinery, gems and jewellery. Key sectors of imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) and $2.3 trillion in terms of GDP at current prices, ranking 9th globally in this category. The GCC region is also a significant source of FDI for India, with cumulative investments exceeding $31.14 billion as on September 2025.
The GCC is also home to nearly ten million members of the Indian community. These strong and enduring people-to-people ties are further reinforced by the substantial presence of Indian companies across the region.
–IANS
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