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Amid global uncertainties, the talks were going on since 2008
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GCC negotiator Raja Al Marzouqi called it a vital signal of cooperation. India’s chief negotiator is Ajay Bhadoo
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With nine recent pacts covering 38 nations, India eyes even more growth
India and the Gulf Cooperation Council (GCC) have taken a big step towards a free trade agreement (FTA). The GCC brings together six nations: Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain.
On Thursday, India’s Commerce and Industry Minister Piyush Goyal oversaw the signing of terms of reference (ToR) in New Delhi. These terms set out the framework for starting formal talks on the deal.
Goyal highlighted the deep ties between India and the GCC, with trade links stretching back over 5,000 years. Around 10 million Indians live and work in the region, supporting its economies. “This pact will create stronger trade flows, more predictable rules, and bigger investments,” he said. It will also strengthen food security for India, a top grain producer, and energy supplies from the GCC’s oil and gas riches.
Bilateral trade hit nearly $179 billion in 2024-25, up from $162 billion the year before.
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India’s exports to the GCC rose slightly to $57 billion, while imports jumped 15% to $122 billion, mainly crude oil and gas
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The UAE is India’s third biggest trade partner ($100 billion total), followed by Saudi Arabia (fifth, $42 billion)
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Qatar, Oman, Kuwait and Bahrain also feature prominently, though with trade gaps favouring the Gulf states
The FTA promises duty cuts and fewer barriers, boosting Indian exports like jewellery, machinery, steel and chemicals. It will open doors for India’s infrastructure firms, petrochemicals and IT services in the growing GCC markets. India already has deals with the UAE (since 2022) and Oman (signed in Muscat on 18 December 2025).
