India and GCC Set the Stage for Renewed Trade Talks

India and the Gulf Cooperation Council (GCC) sign terms to initiate Free Trade Agreement talks. Aimed at boosting trade and investments, India's exports to GCC rose by 1% to USD 57 billion in 2024-25. Earlier FTA negotiations with GCC were stalled after two rounds in 2008.

India, in collaboration with the Gulf Cooperation Council (GCC), has officially started its journey towards a new Free Trade Agreement (FTA) by signing the terms of reference. The signing ceremony was presided over by Commerce and Industry Minister Piyush Goyal, whose initiative marks a renewed effort at establishing robust economic ties between the two regions.

This pivotal move is expected to catalyze bilateral trade, notably as about 10 million Indians reside and work within GCC's six-nation bloc, comprising Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain. Historically, India and Oman had previously signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat in 2025.

The potential FTA negotiations are seen as a critical resumption of talks that last occurred in 2006 and 2008. With bilateral trade showing substantial growth, imports surged by over 15.33% to reach USD 121.7 billion. India's exports slightly increased by 1%, while overall bilateral trade soared to USD 178.7 billion in 2024-25, reflecting the high stakes of the upcoming discussions.

(With inputs from agencies.)