India, GCC Sign ToR to Launch Free Trade Talks, Boost $178bn Trade Ties

The ToR will serve as the foundational framework guiding negotiations for the India–GCC FTA, clearly defining the scope, structure and modalities of the agreement.

India and the Gulf Cooperation Council (GCC) have taken a major step towards deepening economic integration with the signing of the Terms of Reference (ToR) for the India–GCC Free Trade Agreement (FTA), formally launching negotiations for a comprehensive trade pact.

The ToR was signed on 5 February 2026 at Vanijya Bhawan, New Delhi, between Shri Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce, and Dr Raja Al Marzouqi, Chief Negotiator, Secretariat General of the GCC. The signing took place in the presence of Union Minister of Commerce and Industry Shri Piyush Goyal, Minister of State Shri Jitin Prasada, and Commerce Secretary Shri Rajesh Agrawal.

Framework Set for Comprehensive Trade Pact

The ToR will serve as the foundational framework guiding negotiations for the India–GCC FTA, clearly defining the scope, structure and modalities of the agreement. The proposed FTA is expected to cover trade in goods and services, investment, and other areas of economic cooperation.

“Force Multiplier for Global Good”: Piyush Goyal

Addressing the gathering, Shri Piyush Goyal described the India–GCC FTA as a “force multiplier for the global good”, saying it would bring greater predictability and stability to economic relations between the two sides.

He expressed confidence that the agreement would:

• Enable seamless flow of goods and services

• Attract higher investment flows

• Expand employment opportunities

• Strengthen food and energy security across the region

“The FTA will elevate our deep economic ties and take the India–GCC partnership to greater heights,” the Minister said.

GCC Sees FTA as Timely Amid Global Uncertainty

Dr Raja Al Marzouqi highlighted the historic trade relations between India and the GCC, noting that the signing of the ToR marks the formal commencement of negotiations towards a mutually beneficial FTA.

He said the agreement would further reinforce India–GCC relations, especially at a time of prevailing global economic uncertainties, by strengthening cooperation and resilience.

During his visit, Dr Al Marzouqi also held discussions with Commerce Secretary Shri Rajesh Agrawal, focusing on advancing the overall economic partnership and identifying areas of mutual interest.

Strategic Trade and Investment Partner

The India–GCC FTA holds strong potential to unlock further growth in trade with a region that remains one of India’s most important economic partners.

• India–GCC trade stood at USD 178.56 billion in FY 2024–25

  • Exports: USD 56.87 billion

  • Imports: USD 121.68 billion

• The GCC accounts for 15.42% of India’s global trade

• Trade with the GCC has grown at an average annual rate of 15.3% over the past five years

Key Trade Sectors

Major Indian exports to the GCC include:

• Engineering goods

• Rice

• Textiles

• Machinery

• Gems and jewellery

Key imports from the GCC comprise:

• Crude oil and LNG

• Petrochemicals

• Precious metals, particularly gold

The GCC represents a combined market of 61.5 million people with a GDP of USD 2.3 trillion (2024), ranking 9th globally.

Strong Investment and People-to-People Links

The GCC is also a major source of foreign direct investment into India, with cumulative investments exceeding USD 31.14 billion as of September 2025.

Nearly 10 million Indians live and work in GCC countries, reinforcing strong people-to-people ties, further supported by the extensive presence of Indian companies across the region.

Officials said the launch of FTA negotiations marks a strategic milestone in India–GCC relations, with the potential to reshape trade, investment and economic cooperation in the years ahead.