India and the Gulf Cooperation Council (GCC) on Tuesday formalized the start of negotiations on a comprehensive and mutually beneficial Free Trade Agreement (FTA) by signing a joint statement.
India’s Union Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Al Budaiwi endorsed the agreement to start talks.
What did Goyal say?
Heading to X, Goyal said: “Delighted to welcome HE Jasem Mohammad Al Budaiwi, Secretary General of the Gulf Cooperation Council, @GCCSG. We signed a joint statement on the India-GCC Free Trade Agreement, based on the terms signed on 5 February 2026, formally opening negotiations for a comprehensive and mutually beneficial agreement.”
“This marks a significant step towards deeper cooperation in key strategic areas including trade in goods, customs procedures, services, digital trade, high technology and better investment flows between India and the six GCC member states,” he added.
Goyal mentioned that the Joint Statement along with the Terms of Reference (ToR) for the Free Trade Agreement signed on February 5 marks an important milestone in the ties between India and the member states of the Gulf Cooperation Council.
He noted that the partnership, built on a long history and strong cultural links, is expected to gain further momentum through a broad-based and mutually beneficial free trade agreement. He also stressed that at a time of global uncertainty, starting negotiations on a strong trade framework is particularly appropriate as it will help both sides make the most of their common strengths and complementarities.
Read also | India-US trade deal likely to come into effect in April: Piyush Goyal
Jasem Mohamed Albudaiwi emphasized that the FTA will serve as an important tool to further strengthen trade and investment ties between India and the GCC countries by providing predictability and certainty to businesses.
According to information shared by the Ministry of Commerce and Industry, the GCC is India’s largest trading partner bloc with bilateral trade reaching USD 178.56 billion (Export: USD 56.87 billion; Import: USD 121.68 billion) in FY 2024-25, accounting for 15.42% of India’s global trade.
Read also | Why does India need more energy suppliers? Union Minister Piyush Goyal explains
Trade between India and the Gulf Cooperation Council has grown steadily over the past five years, recording an average annual growth of 15.3 percent.
India’s major exports to GCC countries are engineering products, rice, textiles, machinery and gems and jewellery.
Read also | Buying oil from the US is in India’s “interest”, says Piyush Goyal
Major imports from the GCC are largely oil, liquefied natural gas (LNG), petrochemicals and precious metals such as gold. Together, the GCC countries represent a market of around 61.5 million people by 2024 and have a combined GDP of around US$2.3 trillion at current prices, making the bloc the world’s ninth largest economy.
The GCC region is an important source of foreign direct investment for India, with cumulative inflows exceeding US$31.14 billion by September 2025.
The GCC also hosts nearly 10 million Indians who form a vibrant community that serves as a living link between the two sides.
