A Framework Agreement on Economic Cooperation between Republic of India and Gulf Cooperation Council was signed on 25^th August, 2004. In this Agreement, it was provided that both the parties shall consider ways and means for extending and liberalizing the trade relations and also initiating discussions on the feasibility of FTA between them.

First round of Negotiations was held in the Headquarters of GCC, Riyadh on 21^st – 22^nd March, 2006. During this round, GCC side agreed to include services as well as investment and general economic cooperation along with goods in the GCC-India FTA. Another hallmark of this round is Agreement on the modalities for negotiations have been finalized. It was also agreed to conclude the negotiations at the earliest.

Second round of Negotiations was held in Riyadh on 9-10 September, 2008. During this round the discussion progressed in the earlier decided Working Groups. Proposed Tariff Liberalization Scheduled was discussed during this round.

It was further decided that the third round of negotiations would be held in Delhi .

Industry consultations were held to ascertain industry views on the matter. The dates for third round is being finalized in consultations with Gulf Cooperation Council