Commerce Minister Piyush Goyal and chief negotiator on the signing of the phrases of reference for the FTA between India and the Gulf Cooperation Council (GCC). Credit score: X/@PiyushGoyal
India and representatives of the six-nation Gulf Cooperation Council (GCC) on Thursday (February 5, 2026) signed phrases of reference totally free commerce settlement (FTA) negotiations. Collectively, the GCC international locations are India’s largest merchandise buying and selling companions, with complete merchandise commerce exceeding even commerce with the European Union and america.
The phrases of reference (ToR) had been signed by India’s chief FTA negotiator, Further Secretary Ajay Badu, and Deputy Secretary-Common of the Gulf Cooperation Council, Raja Al Marzouki. The signing of the ToR is a crucial precursor to beginning formal negotiations. The GCC international locations are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
“Strategic Financial Accomplice”
“Many people know that the controversy (on the transition to a commerce settlement) has been happening for almost 20 years,” Piyush Goyal, Minister of Commerce and Business, who presided over the signing, mentioned in a speech. “Below the management of Prime Minister Narendra Modi, the GCC group of six international locations has reworked right into a strategic financial associate.”
Goyal added, “It’s best that we forge a stronger and extra strong commerce settlement now. This may allow the free movement of products and providers, deliver predictability and stability to coverage, facilitate higher funding, and take India’s bilateral relations with the GCC group to higher heights.”
largest items commerce
In accordance with knowledge from the Ministry of Commerce and Business, India’s complete bilateral merchandise commerce with GCC international locations reached $178.5 billion in 2024-25, the newest full yr for which knowledge exists. This exceeds the full bilateral merchandise commerce between India and the European Union ($136.5 billion), america ($132.1 billion) and China ($127.7 billion), making it India’s largest merchandise buying and selling associate as a gaggle.
Roughly 10 million Indians stay and work within the GCC area.
Nevertheless, the info additionally exhibits that 56% of India’s complete bilateral items commerce with GCC international locations takes place solely with the UAE, with which India already has one other FTA. Moreover, knowledge exhibits that India has a complete commerce deficit of $64.8 billion with GCC international locations in 2024-2025, and the UAE itself accounts for $26.7 billion of this deficit as a result of giant imports of gold, oil and petroleum merchandise from the nation.
One other GCC nation with which India has an FTA is Oman.
bilateral pursuits
Goyal famous that the workforces of each India and the GCC international locations stand to learn from the ultimate settlement, and each international locations have the potential to realize considerably from every.
“The GCC international locations will help us in additional diversification and progress of our vitality sources, alternatives for our youth, and the large investments that every nation has already dedicated to at varied instances. This may obtain additional impetus with the free commerce settlement between India and the GCC international locations,” he added.
