India, Gulf Cooperation Council Sign Terms Of Reference For Free Trade Agreement
India and the Gulf Cooperation Council (GCC) on Thursday signed the Terms of Reference (ToR) for negotiations on a proposed Free Trade Agreement (FTA), marking a significant step towards deepening economic ties between the two sides.
The ToR was signed at Vanijya Bhawan, New Delhi, by Ajay Bhadoo, Additional Secretary and Chief Negotiator at the Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator of the GCC Secretariat General. The signing took place in the presence of Union Commerce and Industry Minister Piyush Goyal, Minister of State for Commerce and Industry Jitin Prasada, and Commerce Secretary Rajesh Agrawal.
The ToR will guide the scope, structure, and modalities of the India-GCC FTA negotiations, formally initiating discussions aimed at a comprehensive trade pact.
Addressing the ceremony, Goyal said the proposed FTA would act as a “force multiplier for the global good,” bringing greater predictability and stability to trade relations between India and the GCC. He expressed confidence that the agreement would facilitate the seamless flow of goods and services, attract investments, generate employment opportunities, and strengthen food and energy security across the region.
Al Marzouqi highlighted the long-standing historical trade relations between India and the GCC and said the signing of the ToR marks the formal commencement of negotiations towards a mutually beneficial FTA. He noted that the agreement would further reinforce economic ties, particularly amid prevailing global economic uncertainties.
During his visit to New Delhi, Al Marzouqi also met Commerce Secretary to discuss ways to strengthen the overall economic partnership and advance cooperation in areas of mutual interest.
According to the Ministry of Commerce & Industry, the proposed India-GCC FTA is expected to unlock significant trade potential with a region that has deep-rooted commercial and cultural ties with India. India’s trade with the GCC stood at USD 178.56 billion in FY 2024-25, accounting for 15.42 per cent of India’s total global trade. Over the past five years, bilateral trade has grown at an average annual rate of 15.3 per cent.
India’s key exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery, while imports primarily comprise crude oil, liquefied natural gas (LNG), petrochemicals, and precious metals such as gold.
The GCC, comprising six countries, represents a combined market of about 61.5 million people and a GDP of USD 2.3 trillion, ranking ninth globally. The region 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 members of the Indian diaspora live in GCC countries, further strengthening people-to-people ties alongside the strong presence of Indian businesses across the region.
