New Delhi: India and the Gulf Cooperation Council (GCC) have formally launched negotiations for the India GCC FTA with the signing of a Joint Statement on the FTA agreement in New Delhi.
The India GCC FTA is aimed at establishing a comprehensive and mutually beneficial trade agreement between the two sides.
The Joint Statement on the India GCC FTA was signed by Piyush Goyal, Union Minister of Commerce and Industry, and His Excellency Jasem Mohamed Albudaiwi, Secretary General of the Gulf Cooperation Council, on February 24, 2026, in New Delhi.
The signing ceremony took place in the presence of distinguished delegations and representatives from both sides, marking a significant step forward in advancing the India GCC FTA.
India GCC FTA: A Significant Milestone in Bilateral Relations
During the signing ceremony, Piyush Goyal emphasized that the Joint Statement, along with the Terms of Reference (ToR) for the FTA signed on February 5, 2026, marks a significant milestone in the relationship between India and GCC countries.
He stated that the deeply rooted relationship, built on shared history and cultural linkages, would receive further impetus from a broad-based and mutually beneficial India GCC FTA.
He underlined that amidst global uncertainties, it is most opportune that discussions are starting on negotiating a robust trading arrangement that would harness mutual synergies and complementarities through the India GCC FTA framework.
His Excellency Jasem Mohamed Albudaiwi highlighted that the India GCC FTA will serve as an important tool to further strengthen trade and investment ties between India and GCC countries by infusing predictability and certainty for businesses.
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India GCC FTA to Unlock Trade Potential
The India GCC FTA holds significant potential to unlock and expand trade with a region with which India has longstanding historical ties in trade and commerce.
The GCC is India’s largest trading partner bloc, with bilateral trade reaching USD 178.56 billion in FY 2024-25. This includes exports of USD 56.87 billion and imports of USD 121.68 billion, accounting for 15.42% of India’s global trade.
Over the past five years, India’s trade with the GCC has expanded steadily, registering an annual average growth rate of 15.3 per cent. The India GCC FTA is expected to further accelerate this trajectory by creating a structured and predictable trade environment.
Key exports from India to the GCC include engineering goods, rice, textiles, machinery, gems and jewelry. Major imports from the GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold.
Through the India GCC FTA, both sides aim to deepen cooperation across these sectors while exploring new avenues for diversification.
Collectively, the GCC countries represent a market of 61.5 million people in 2024 and a combined GDP of USD 2.3 trillion at current prices, ranking 9th globally.
The region is also a significant source of foreign direct investment (FDI) for India, with cumulative investments exceeding USD 31.14 billion as of September 2025. The India GCC FTA is expected to further strengthen investment flows between the two regions.
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Strengthening Economic and People-to-People Ties
The GCC is home to nearly ten million members of the Indian community, serving as a living bridge between India and GCC countries.
These strong and enduring people-to-people connections form the foundation of the bilateral relationship, further reinforced by the substantial presence of Indian companies across the region.
The India GCC FTA is expected to unlock the full potential of trade between India and the GCC upon signing and would act as a force multiplier for global good.
It is also anticipated to facilitate the expansion and diversification of exports while strengthening economic integration between the two sides.
With the formal launch of negotiations, the India GCC FTA marks a crucial step toward deepening economic engagement between India and the Gulf region, reinforcing long-standing trade, investment, and strategic partnerships.
