India and the Gulf Cooperation Council (GCC) signed the Joint Statement for a free trade agreement (FTA) on Monday, marking a major step towards deeper collaboration in key strategic areas. The signing took place in the presence of the distinguished delegations and representatives of both the parties.
Minister of Commerce and Industry Piyush Goyal signed the key document with Jasem Mohammad Al Budaiwi, Secretary General of the GCC. The Gulf Cooperation Council (GCC) includes six member countries, namely Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain.
Goyal underscored that the relationship which is deeply rooted in shared history and cultural linkages, would get further impetus from a broad-based and mutually beneficial FTA. He also underlined that amidst global uncertainties, it is most opportune that discussions are starting on negotiating a robust trading arrangement which would harness mutual synergies and complementarities.
He underscored that the relationship which is deeply rooted in shared history and cultural linkages, would get further impetus from a broad-based and mutually beneficial FTA. Heunderlined that amidst global uncertainties, it is most opportune that discussions are starting on negotiating a robust trading arrangement which would harness mutual synergies and complementarities.
"We signed the Joint Statement for the India–GCC FTA, building on the Terms of Reference signed on February 5, 2026, formally launching negotiations for a comprehensive and mutually beneficial agreement," he said in a post on X.
Goyal said that the signing of the Joint Statement marks a major step toward deeper collaboration in key strategic areas, including trade in goods, customs procedures, services, digital trade, cutting-edge technologies, and enhanced investment flows between India and the six GCC member nations.
Albudaiwi emphasized 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.
India already holds trade pacts with two member countries of the GCC bloc - UAE and Oman, and is also in negotiations with Qatar for an FTA.
New Delhi signed the terms of reference for FTA with the Middle Eastern group on February 5 to resume talks for a trade pact that was overdue since 2004.
"We will also get a foothold to grow Indian infrastructure and the infrastructure in the GCC, together with the high-quality companies that are working in the space of infrastructure," Goyal had said earlier, adding that India's petrochemical industry will hugely benefit with this partnership.
In FY25, India and GCC undertook bilateral trade of goods worth $178.56 billion, with India's exports at $56.87 billion and imports of $121.66 billion, accounting for 15.42% of India's global trade. In the GCC group, Saudi Arabia is India's second-largest trade partner after the UAE.
The GCC region is also a significant source of Foreign Direct Investment (FDI) for India, with cumulative investments exceeding $31.14 billion as on September 2025.
In the last five years, India’s trade with the GCC countrues has expanded steadily, registering an annual average growth rate of 15.3%.
India exports engineering goods, rice, textiles, machinery, gems and jewelry to GCC, while it imports crude oil, LNG, petrochemicals, and precious metals such as gold.
Collectively, the GCC countries represent a market of 61.5 million people (2024) and $2.3 trillion in terms of GDP at current prices, ranking 9th globally in this categor ..
The upcoming India–GCC FTA is expected to unlock the full potential of trade between the parties upon signing and would be a force multiplier for global good, while facilitating the expansion and diversification of exports and strengthening economic integration between the two sides, the Indian government said in an official statement.
Following the signing of the joint statement, AlBudaiwi met External Affairs Minister Dr S Jaishankar wherein the two leaders expressed confidence that the India–GCC trade agreement will further elevate partnership.
"The India–GCC Joint Action Plan, anchored in our Strategic Dialogue, is advancing cooperation across trade and investment, energy and agriculture, security, and people-to-people ties," Jaishankar wrote in a post on X.
Source Name : Economic Times