India and Gulf Cooperation Council Sign Terms of Reference for India

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Dated: 06.02.2026

India and Gulf Cooperation Council Sign Terms of Reference for India–GCC Free Trade Agreement

Introduction

In a landmark development, India and the Gulf Cooperation Council (GCC) have taken a significant step towards strengthening their economic partnership by signing the Terms of Reference (ToR) for the India-GCC Free Trade Agreement (FTA). The signing ceremony took place on February 5, 2026, at Vanijya Bhawan, New Delhi, marking the beginning of negotiations for a mutually beneficial trade agreement between the two regions.

The Signing Ceremony

The ToR was signed by Shri 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 event was graced by the presence of Union Minister of Commerce and Industry Shri Piyush Goyal, Union Minister of State for Commerce and Industry Shri Jitin Prasada, and Commerce Secretary Shri Rajesh Agrawal.

During the ceremony, Shri Piyush Goyal highlighted the transformative potential of the FTA, describing it as a “force multiplier for the global good.” He emphasized that the agreement would bring predictability and stability to the economic relationship between India and GCC, fostering seamless trade, investment, job creation, and ensuring food and energy security for the region. Dr. Raja Al Marzouqi echoed these sentiments, noting the historic trade relations between India and GCC and the importance of the FTA in strengthening ties amidst global uncertainties.

India-GCC Trade Relations: A Snapshot

India and GCC share a robust and historic trade relationship. In FY 2024-25, bilateral trade between the two regions stood at USD 178.56 billion, accounting for 15.42% of India’s global trade. Over the past five years, trade between India and GCC has grown steadily, with an annual average growth rate of 15.3%.

India’s key exports to GCC include engineering goods, rice, textiles, machinery, and gems and jewelry. On the other hand, imports from GCC primarily consist of crude oil, LNG, petrochemicals, and precious metals like gold. The GCC region, comprising six member countries, represents a market of 61.5 million people (2024) and boasts a GDP of USD 2.3 trillion, ranking 9th globally in terms of GDP at current prices.

Significance of the India-GCC FTA

The India-GCC FTA is expected to unlock immense potential for trade and investment between the two regions. It aims to facilitate the seamless flow of goods and services, attract investments, and create new job opportunities. The agreement is also expected to bolster food and energy security, which is crucial for both regions.

The GCC is a significant source of Foreign Direct Investment (FDI) for India, with cumulative investments exceeding USD 31.14 billion as of September 2025. Additionally, the GCC is home to nearly ten million members of the Indian community, further strengthening the people-to-people ties between the two regions. The presence of Indian companies across the GCC countries also underscores the deep economic and cultural connections.

Looking Ahead

The signing of the ToR marks the beginning of negotiations for the India-GCC FTA, which promises to elevate the relationship between the two regions to new heights. As the negotiations progress, both sides aim to address key areas of mutual interest and create a framework that benefits businesses, investors, and citizens alike.

The India-GCC FTA is not just a trade agreement; it is a testament to the enduring partnership between India and the GCC. With shared goals and a commitment to mutual growth, this agreement has the potential to reshape the economic landscape of both regions and contribute to global stability and prosperity.

Conclusion

The India-GCC Free Trade Agreement is a historic step forward in strengthening the economic ties between India and the Gulf Cooperation Council. As negotiations unfold, the agreement is expected to pave the way for enhanced trade, investment, and cooperation, fostering a brighter future for both regions. With a shared vision and commitment, India and GCC are poised to achieve new milestones in their partnership, ensuring mutual growth and prosperity in the years to come.

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Source: Ministry of Commerce & Industry

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