India and the Gulf Cooperation Council (GCC) have formally launched negotiations for a comprehensive free trade agreement (FTA) after signing fresh terms of reference, marking a significant step toward deepening economic engagement between the two sides.
The agreement sets the framework for negotiations covering goods, services, investment, customs cooperation, and trade facilitation. Officials said the talks aim to reduce tariffs, address non-tariff barriers, and create smoother market access for businesses across sectors.
The GCC—comprising Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain—is one of India’s largest trading partners, with bilateral trade exceeding $150 billion annually. Energy, petrochemicals, gems and jewellery, food products, engineering goods, and pharmaceuticals are expected to be key focus areas in the negotiations.
From India’s perspective, the FTA could boost exports of manufactured goods, agri-products, and services, while also encouraging greater investment flows from the Gulf. For GCC countries, the pact offers improved access to one of the world’s fastest-growing major markets and stronger integration with India’s supply chains.
Officials on both sides indicated that negotiations will be pursued in phases, with an emphasis on early harvest opportunities and practical outcomes that can quickly support trade growth. If concluded, the India-GCC FTA would become one of India’s most significant regional trade agreements, reshaping trade and investment ties across the broader Middle East–South Asia corridor.