New Delhi: The Terms of Reference (ToR) for the India GCC Free Trade Agreement were signed on 5 February 2026 at Vanijya Bhawan, New Delhi, marking the formal launch of negotiations for a comprehensive trade pact between India and the Gulf Cooperation Council (GCC).
The ToR for India GCC Free Trade Agreement was signed by Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce, and Dr Raja Al Marzouqi, Chief Negotiator, Secretariat General of the Gulf Cooperation Council.
The ceremony took place in the presence of Union Minister of Commerce and Industry Piyush Goyal, Union Minister of State for Commerce and Industry Jitin Prasada, and Commerce Secretary Rajesh Agrawal.
The ToRs will guide negotiations by defining the scope and modalities of the proposed GCC India Free Trade Agreement.
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India GCC Free Trade Agreement to Strengthen Trade, Investment, and Economic Cooperation
During the signing ceremony, Piyush Goyal emphasized that the India GCC Free Trade Agreement 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 India GCC Free Trade Agreement will enable 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 Raja Al Marzouqi underscored that 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 Raja Al Marzouqi also met Commerce Secretary Rajesh Agrawal to discuss strengthening the overall economic partnership between India and GCC and advancing cooperation in areas of mutual interest.
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Growing Trade Ties Between India and GCC
The India GCC Free Trade Agreement holds significant potential to unlock and expand trade with an important region with which India shares longstanding historical ties in trade and commerce.
India’s trade with GCC stood at USD 178.56 billion in FY 2024-25, including exports of USD 56.87 billion and imports of USD 121.68 billion, accounting for 15.42% of India’s global trade.
Over the last five years, trade between India and GCC has grown steadily at an annual average rate of 15.3%.
- Key exports from India to GCC include engineering goods, rice, textiles, machinery, and gems and jewelry.
- Major imports from GCC include crude oil, LNG, petrochemicals, and precious metals such as gold.
The GCC countries collectively represent a market of 61.5 million people (2024) and a combined GDP of USD 2.3 trillion at current prices, ranking ninth globally.
The region is also a significant source of foreign direct investment for India, with cumulative investments exceeding USD 31.14 billion as of September 2025.
The GCC is home to nearly ten million members of the Indian community, further strengthening people-to-people ties and economic engagement, supported by the presence of Indian companies across the region.
