New Delhi, India – The Gulf Cooperation Council (GCC) and India on Tuesday signed a joint statement on a Free Trade Agreement (FTA), formally launching negotiations for a comprehensive and mutually beneficial pact.
The joint statement was signed by India’s Union Minister of Commerce and Industry, Piyush Goyal, and the Secretary-General of the GCC, Jasem Mohamed Al Budaiwi.
Posting on social media platform X, Goyal said, “Delighted to welcome H E Jasem Mohammad Al Budaiwi, Secretary-General of the GCC. We signed the Joint Statement for the India-GCC FTA, building on the Terms of Reference signed on February 5, 2026, formally launching negotiations for a comprehensive and mutually beneficial agreement.”
“This marks a major step towards deeper collaboration in key strategic areas, including trade in goods, customs procedures, services, digital trade, cutting-edge technologies and enhanced investment flows between India and the six GCC member states,” he added.
Goyal emphasised that the statement, along with the Terms of Reference (ToR) for the FTA signed on February 5, 2026, marks a significant milestone in relations between India and the GCC countries.
He underscored that the relationship, deeply rooted in shared history and cultural linkages, would receive fresh impetus from a broad-based and mutually beneficial FTA. He added that amid global uncertainties, it is particularly opportune that discussions are commencing on negotiating a robust trade arrangement that would harness mutual synergies and complementarities.
Al Budaiwi said the FTA would serve as an important instrument to further strengthen trade and investment ties between India and the GCC by providing greater predictability and certainty for businesses.
The GCC is India’s largest trading partner bloc, with bilateral trade reaching $178.56bn (exports: $56.87bn; imports: $121.68bn) in fiscal year 2024–25, accounting for 15.42% of India’s global trade.
Over the past five years, India’s trade with the GCC has expanded steadily, recording an average annual growth rate of 15.3%.
Key exports from India to the GCC include engineering goods, rice, textiles, machinery, gems and jewellery. Major imports from the GCC comprise crude oil, liquefied natural gas (LNG), petrochemicals and precious metals such as gold.
The GCC region is also a significant source of foreign direct investment (FDI) for India, with cumulative investments exceeding $31.14bn as of September 2025.
Additionally, the GCC is home to nearly 10mn members of the Indian community, serving as a living bridge between the two sides.
