India and GCC Sign Terms of Reference to Launch Free Trade
Agreement Negotiations
·
The Terms
of Reference (ToR) for the India–GCC Free Trade Agreement (FTA)
were signed on 5 February
2026 at Vanijya Bhawan, New Delhi.
·
The ToRs were signed by Ajay Bhadoo, Additional
Secretary and Chief Negotiator, Department of Commerce, and Dr. Raja Al Marzouqi,
Chief Negotiator, Secretariat General of the Gulf Cooperation Council (GCC).
·
The signing took place in the presence of Union Commerce and Industry Minister
Piyush Goyal, MoS
Jitin Prasada, and Commerce
Secretary Rajesh Agrawal.
·
The ToRs define the scope and modalities and
will guide negotiations for the proposed India–GCC FTA.
·
Piyush Goyal described the FTA as a force multiplier,
emphasizing its role in enhancing predictability,
stability, trade in goods and services, investment flows, job creation, and
food and energy security.
·
Dr. Al Marzouqi highlighted the historic trade ties
between India and GCC and noted that the signing marks the formal commencement of negotiations
toward a mutually beneficial agreement amid global uncertainties.
·
During his visit, Dr. Al Marzouqi
also met Commerce
Secretary Rajesh Agrawal to discuss strengthening the overall economic partnership and
cooperation in areas of mutual interest.
·
India–GCC trade stood at USD 178.56 billion in FY 2024–25, comprising exports of USD 56.87 billion
and imports of USD 121.68
billion, accounting for 15.42%
of India’s global trade.
·
Over the past five years, bilateral trade has grown at an average annual rate of 15.3%.
·
Key Indian exports to GCC include engineering goods, rice, textiles,
machinery, and gems and jewellery, while imports mainly consist
of crude oil, LNG,
petrochemicals, and gold.
·
The GCC represents a market of 61.5 million people with
a combined GDP of USD 2.3
trillion, ranking 9th
globally.
·
The GCC is a major source of FDI for India, with
cumulative investments exceeding USD
31.14 billion as of September 2025.
·
Nearly ten
million Indians reside in the GCC, underscoring strong people-to-people ties
and a significant presence of Indian companies across the region.
India and Gulf Cooperation
Council Sign Terms of Reference for India–GCC Free Trade Agreement
The
Terms of Reference (ToR) for the India-GCC Free Trade
Agreement (FTA) were signed between Ajay Bhadoo, Additional Secretary and Chief
Negotiator, Department of Commerce and Dr. Raja Al Marzouqi, Chief Negotiator,
Secretariat General of the Gulf Cooperation Council, on 5 February 2026 at Vanijya Bhawan, New Delhi. The signing took place in the
presence of Union Minister of Commerce and Industry Piyush Goyal, Union
Minister of State for Commerce and Industry Jitin Prasada, and Commerce
Secretary Rajesh Agrawal.
The
ToRs will guide the negotiations for the GCC-India
FTA by defining its scope and modalities.
During
the signing ceremony, Piyush Goyal emphasized that the FTA will be a force
multiplier for the global good. He underlined that the FTA will bring
predictability and stability, taking the relationship between the two sides to
greater heights. He exuded confidence that FTA will enable seamless flow of
goods, and services and attract investments while expanding job opportunities
and fostering food and energy security for the region, elevating our deep
economic ties.
Chief
Negotiator, Secretariat General of the Gulf Cooperation Council, Dr. Al
Marzouqi, underscored that GCC and India have shared historic trade relations
and that the signing of ToRs marks the commencement
of negotiations towards a mutually beneficial FTA. He highlighted that the FTA
will further reinforce relations between India and GCC, particularly in the
context of prevailing global uncertainties.
During
his visit, Dr. Raja Al Marzouqi met with Rajesh Agrawal. The discussion focused
on bolstering overall economic partnership between India and the GCC and
advancing cooperation in the areas of mutual interest.
The
India–GCC FTA holds significant potential to unlock and expand trade with an
important region, with which India has longstanding historical ties in trade
and commerce. India’s trade with GCC stood at USD 178.56 billion (Exports: USD
56.87 billion; Imports: USD 121.68 billion) in FY 2024-25, accounting for
15.42% of India’s global trade. In the last five years, India’s trade with the
GCC has expanded steadily, registering an annual average growth rate of 15.3
per cent.
Key
exports from India to GCC include engineering goods, rice, textiles, machinery,
gems and jewelry. Key sectors of imports from GCC
primarily comprise crude oil, LNG, petrochemicals, and precious metals such as
gold. Collectively, the GCC countries represent a market of 61.5 million people
(2024) and US$ 2.3 trillion in terms of GDP at current prices, ranking
9th globally in this category. The GCC region is also a significant source
of FDI for India, with cumulative investments exceeding USD 31.14 billion as on
September 2025.
The
GCC is also home to nearly ten million members of the Indian community. These
strong and enduring people-to-people ties are further reinforced by the
substantial presence of Indian companies across the region.