India and the Gulf Cooperation Council (GCC) have officially signed the Terms of Reference (ToR) for a proposed Free Trade Agreement (FTA). The signing marks the formal start of negotiations for a comprehensive trade deal between India and the Gulf region.
Who signed the India–GCC FTA ToR?
The ToR was signed at Vanijya Bhawan by Ajay Bhadoo, Additional Secretary and Chief Negotiator from India’s Commerce Department, and Dr. Raja Al Marzouqi, Chief Negotiator from the GCC Secretariat General. The ceremony took place in the presence of Commerce and Industry Minister Piyush Goyal, Minister of State Jitin Prasada, and Commerce Secretary Rajesh Agrawal.
What does the Terms of Reference mean?
The ToR defines the scope, structure, and negotiation framework of the India–GCC FTA. It acts as a roadmap for discussions on trade in goods, services, investment, and other economic cooperation areas.
Why is the India–GCC FTA important?
According to Minister Piyush Goyal, the FTA will bring stability and predictability to trade. It is expected to improve the smooth flow of goods and services, attract investments, create jobs, and strengthen food and energy security between India and the Gulf region.
Dr. Al Marzouqi highlighted that India and GCC share historic trade relations. He said the agreement is especially important at a time of global economic uncertainty and will deepen long term cooperation.
How much trade happens between India and GCC?
India’s total trade with GCC reached USD 178.56 billion in FY 2024–25. This includes USD 56.87 billion in exports and USD 121.68 billion in imports. GCC accounts for 15.42% of India’s global trade. Over the past five years, trade between both sides has grown at an average annual rate of 15.3%.
What does India export to GCC?
Major Indian exports to GCC include engineering goods, rice, textiles, machinery, gems, and jewellery.
What does India import from GCC?
India mainly imports crude oil, LNG, petrochemicals, and precious metals such as gold from GCC nations.
How big is the GCC market?
The GCC region represents a combined population of about 61.5 million people in 2024. Its total GDP is about USD 2.3 trillion, making it the 9th largest economic bloc globally.
What about investments and people ties?
GCC countries are key investors in India, with cumulative FDI of over USD 31.14 billion as of September 2025. The region is also home to nearly 10 million Indians, strengthening strong people to people and business connections.
What happens next?
With the ToR signed, formal negotiations for the India–GCC Free Trade Agreement will begin. The deal aims to deepen economic partnership, boost trade, and strengthen long term strategic ties between India and the Gulf region.
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