India, GCC Sign Terms to Launch Free Trade Agreement Talks
India and the Gulf Cooperation Council (GCC) have formally agreed to begin negotiations for a comprehensive Free Trade Agreement (FTA), a move set to deepen economic ties with its largest trading partner bloc.
Key Details of the Agreement
The Terms of Reference (ToR) for the India-GCC FTA were signed in New Delhi by Commerce Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi. The signing ceremony was attended by ministers from the six GCC nations: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The ministry stated, “The signing of the ToR marks the initiation of negotiations for the India-GCC FTA.” It described the planned pact as a “modern, comprehensive agreement with substantial coverage of goods and services.”
Why This FTA Matters
- Massive Trade Volume: The GCC is India’s largest trading partner bloc, with bilateral trade hitting $184 billion in 2022-23.
- Trade Imbalance: India’s exports to the GCC were $51.4 billion (up 4.6%), while imports surged to $132.2 billion (up 18.8%).
- Strategic Energy Partners: GCC nations are key suppliers of crude oil and LPG to India.
- Existing Framework: India already has a with the UAE, active since May 2022.
The UAE and Saudi Arabia are individually India’s third and fourth largest trading partners. The new FTA aims to build on these relationships.
Official Statements and Future Outlook
The commerce ministry highlighted the agreement’s potential, stating it “is expected to further strengthen our economic ties and contribute to our shared prosperity.”
It further projected the FTA as a “landmark agreement, fostering closer economic ties and unlocking new opportunities for trade and investment between India and the GCC countries.” Talks have been underway for several years, marking a significant step forward in India’s .
