India and the Gulf Cooperation Council (GCC) on Wednesday signed the Terms of Reference (ToR) for the proposed India–GCC Free Trade Agreement (FTA), formally launching negotiations for a comprehensive trade pact between the two sides.
The ToRs were signed at Vanijya Bhawan, New Delhi, by 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 ceremony was held in the presence of Union Minister of Commerce and Industry Shri Piyush Goyal, Minister of State for Commerce and Industry Shri Jitin Prasada, and Commerce Secretary Shri Rajesh Agrawal.
The ToRs will define the scope, structure, and modalities of the negotiations and serve as the guiding framework for the proposed India–GCC FTA.
Addressing the gathering, Shri Piyush Goyal described the FTA as a “force multiplier for the global good,” stating that it would bring predictability and stability to economic relations between India and the GCC. He expressed confidence that the agreement would enable seamless flow of goods and services, attract investments, generate employment, and strengthen food and energy security across the region, thereby elevating bilateral economic ties to a new level.
Dr. Raja Al Marzouqi highlighted the historically strong trade relations between India and the GCC, noting that the signing of the ToRs marks the formal commencement of negotiations towards a mutually beneficial FTA. He added that the agreement would further reinforce India–GCC relations, especially amid prevailing global economic uncertainties.
During his visit, Dr. Al Marzouqi also held discussions with Commerce Secretary Shri Rajesh Agrawal, focusing on strengthening the overall economic partnership and advancing cooperation in areas of mutual interest.
The proposed India–GCC FTA holds significant potential to expand trade with a strategically important region. India’s trade with the GCC 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 the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery, while major imports consist of crude oil, LNG, petrochemicals, and precious metals such as gold. The GCC region, with a population of 61.5 million and a GDP of USD 2.3 trillion, ranks as the world’s ninth-largest economy.
The GCC is also a major source of foreign direct investment for India, with cumulative investments exceeding USD 31.14 billion as of September 2025. Nearly ten million Indians reside in the GCC countries, further strengthening people-to-people ties alongside the strong presence of Indian companies across the region.
