India, GCC Nations Agree to Launch Free Trade Agreement Negotiations

India-GCC Free Trade Agreement (FTA) Negotiations Launched

Key Highlights:

• February 5, 2026: India and the Gulf Cooperation Council (GCC) signed the Terms of Reference (ToR) for a comprehensive and mutually beneficial agreement.
• February 22, 2026: A joint statement was signed by Piyush Goyal, Union Minister of Commerce and Industry, and Jasem Mohamed Al Budaiwi, Secretary General of the GCC, formally launching negotiations for the FTA.
• Trade Relations: India and the GCC have a long history of trade cooperation, with the GCC being India's largest trading partner bloc.

Trade Statistics:

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• Bilateral Trade: USD 178.56 billion in FY 2024-25, accounting for 15.42% of India's global trade.
• Annual Growth Rate: 15.3% average growth rate over the last five years.
• Key Exports: Engineering goods, rice, textiles, machinery, and gems and jewelry.
• Key Imports: Crude oil, LNG, petrochemicals, and precious metals such as gold.

Market Analysis:

• GCC Market: 61.5 million people (2024) and USD 2.3 trillion in terms of GDP at current prices, ranking 9th globally.
• FDI: 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.
• Indian Community: Nearly ten million members of the Indian community reside in the GCC region, acting as a living bridge between both countries.