India and GCC to Begin FTA Talks: A Renewed Economic Bond

India and the Gulf Cooperation Council (GCC) are set to commence discussions for a Free Trade Agreement (FTA), marking a significant step after previous negotiations stalled. The agreement aims to boost bilateral trade, which significantly contributes to India's economy, especially in terms of oil, natural gas, and precious exports.

India and the Gulf Cooperation Council (GCC), a six-nation bloc comprising Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, are poised to begin discussions on a Free Trade Agreement (FTA) this Thursday. Piyush Goyal, India's Commerce and Industry Minister, will oversee the signing of the terms of reference, which detail the scope and framework for the proposed trade agreement.

This initiative revives discussions halted since the second round of talks in 2008 and signals a new chapter in India-GCC relations. India's trade with the Gulf nations, mainly centered around crude oil and natural gas imports, has seen significant growth, marking a total trade volume of USD 178.7 billion in 2024-25.

The deal also underscores the importance of Gulf countries to the Indian diaspora, as they host nearly half of India's 32 million non-resident Indians. This move is expected to further enhance economic ties and increase the flow of goods, such as precious metals and machinery, between the regions.

(With inputs from agencies.)