India and the Gulf Cooperation Council (GCC) formally launched negotiations for a Free Trade Agreement (FTA) through a Joint Statement signed on 24 February 2026 in New Delhi. The Joint Statement was signed by India’s Union Minister of Commerce and Industry, Piyush Goyal, and GCC Secretary General, Jasem Mohamed Albudaiwi. The Terms of Reference for the FTA were signed on 5 February 2026 and set the framework for the negotiations.
Gulf Cooperation Council and Its Members
The Gulf Cooperation Council is a regional political and economic grouping of six Arab states in West Asia. Its members are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The GCC was established in 1981 and has its headquarters in Riyadh, Saudi Arabia.
India-GCC Trade Profile
The GCC is India’s largest trading partner bloc. Bilateral trade between India and the GCC reached USD 178.56 billion in FY 2024-25, including USD 56.87 billion in exports and USD 121.68 billion in imports. India’s trade with the GCC covers petroleum products, gems and jewellery, engineering goods, chemicals, food items, and services.
Free Trade Agreement Framework
A Free Trade Agreement is a treaty between two or more economies that reduces or removes tariffs and other trade barriers on selected goods and services. FTAs also include rules on customs procedures, investment, intellectual property, and dispute settlement. India has signed FTAs with several partners, including the United Arab Emirates and Australia.
Negotiation Process and Related Developments
Negotiations for the India-GCC FTA were temporarily stalled in June 2026 because of the West Asia crisis. On 23 August 2026, India’s Ambassador to Saudi Arabia, Vipul, and GCC Secretary General Jasem Mohamed Albudaiwi held talks in Riyadh to review the negotiations and discuss preparations for a ministerial meeting. Physical negotiations for the trade pact were anticipated in September 2026, subject to the geopolitical situation in West Asia.
Important Facts for Exams
- The GCC was formed in 1981 as a regional organisation of six West Asian states.
- India and the GCC signed the Terms of Reference for the FTA on 5 February 2026.
- India’s bilateral trade with the GCC stood at USD 178.56 billion in FY 2024-25.
- Free Trade Agreements usually cover tariffs, services, investment, and trade facilitation.
Trade and Economic Cooperation Areas
The proposed FTA seeks to strengthen trade, investment, and economic integration between India and the GCC. The negotiations also cover digital trade and emerging technologies, which are part of modern trade agreements. The GCC region remains important for India’s energy imports, expatriate workforce, and merchandise trade.
