Joint Statement Signed in New Delhi to Resume Long-Pending FTA Talks
New Delhi, February 24: India and the six-nation Gulf Cooperation Council have formally launched negotiations for a proposed Free Trade Agreement, marking a renewed push to deepen economic ties between the two regions.A joint statement was signed in New Delhi by Commerce and Industry Minister Piyush Goyal and the visiting Secretary General of the GCC, Jasem Mohammad Al Budaiwi. The Commerce Ministry confirmed that the joint statement formally initiates negotiations for a comprehensive and mutually beneficial India GCC FTA.
The launch represents a resumption of earlier efforts, as previous rounds of negotiations were held in 2006 and 2008. The third round did not materialize after the GCC deferred negotiations with all countries and economic groups.
India GCC Trade Relations Strengthen as Talks Resume
Emphasising the significance of the agreement, Al Budaiwi stated that the proposed FTA would serve as an important instrument to strengthen trade and investment ties by ensuring predictability and certainty for businesses operating across both regions.The GCC remains India’s largest trading partner bloc. In 2024 to 2025, bilateral trade between India and the GCC reached USD 178.56 billion. India’s exports stood at USD 56.87 billion, while imports were valued at USD 121.68 billion, accounting for 15.42 percent of India’s total global trade.
Over the past five years, trade between India and GCC countries has expanded at an annual average growth rate of 15.3 percent, reflecting steadily deepening economic engagement.
Trade Composition and Strategic Focus Areas
The proposed India GCC Free Trade Agreement aims to broaden collaboration across several strategic areas. According to Goyal, the talks will focus on trade in goods, customs procedures, services, digital trade, advanced technologies, and enhanced investment flows.Key exports from India to GCC nations include engineering goods, rice, textiles, machinery, gems and jewellery. India also exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals.
On the import side, India sources crude oil, liquefied natural gas, petrochemicals, and precious metals such as gold from the Gulf region. Crude oil and natural gas imports from countries such as Saudi Arabia and Qatar remain a central component of the trade relationship.
GCC Market Size and Investment Flows
The GCC comprises Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. Collectively, the bloc represents a market of 61.5 million people in 2024 and has a combined GDP of USD 2.3 trillion at current prices, ranking ninth globally.The GCC region is also a significant source of foreign direct investment for India. Cumulative investments from GCC countries into India have exceeded USD 31.14 billion as of September 2025.
Additionally, nearly ten million members of the Indian community reside in GCC countries, adding a strong people-to-people dimension to the economic partnership.
Recent Bilateral Trade Trends
India’s exports to the GCC grew by about one percent to USD 57 billion in 2024 to 2025, compared with USD 56.32 billion in 2023 to 2024. Imports rose by 15.33 percent to USD 121.7 billion in 2024 to 2025 from USD 105.5 billion in the previous year.Overall bilateral trade increased to USD 178.7 billion in 2024 to 2025, up from USD 161.82 billion in 2023 to 2024.
Existing Trade Agreements with GCC Members
India has already operationalised a free trade pact with the United Arab Emirates in May 2022. India and Oman also signed a Comprehensive Economic Partnership Agreement in Muscat on December 18, 2025.The launch of negotiations with the GCC bloc as a whole is expected to build on these bilateral agreements and create a broader framework for economic integration between India and the Gulf region.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.