India, GCC Sign Terms of Reference To Formally Begin FTA Talks

New Delhi, Feb 6 (KNN) India and the Gulf Cooperation Council (GCC) on Thursday signed the Terms of Reference (ToR) for negotiations for the proposed Free Trade Agreement (FTA), formally launching the negotiation process.

The ToR was signed at Vanijya Bhawan, New Delhi, by Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator, Secretariat General, GCC.

Framework for Negotiations

The ToR will guide the FTA negotiations by defining their scope, structure and modalities. Officials said the agreement aims to deepen economic engagement and provide a structured pathway for expanding trade and investment ties between India and the GCC.

Addressing the event, Commerce and Industry Minister Piyush Goyal said, “The FTA will be a force multiplier for the global good. He underlined that the FTA will bring predictability and stability, taking the relationship between the two sides to greater heights.”

It will help facilitate the flow of goods and services, attract investment, create employment opportunities, and strengthen food and energy security, he added.

GCC Perspective

Dr. Al Marzouqi said India and the GCC share longstanding trade relations, and the signing of the ToR marks the start of negotiations towards a mutually beneficial agreement. He noted that closer economic cooperation assumes added significance amid global economic uncertainties.

During his visit, Dr. Al Marzouqi also met Commerce Secretary Rajesh Agrawal, with discussions focusing on strengthening the overall economic partnership and advancing cooperation in areas of mutual interest.

Trade and Economic Significance

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 major exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery, while imports are dominated by crude oil, LNG, petrochemicals and precious metals such as gold.

The GCC countries together represent a market of about 61.5 million people and a combined GDP of USD 2.3 trillion, ranking ninth globally. 

The region is also a major source of foreign direct investment for India, with cumulative inflows exceeding USD 31.14 billion as of September 2025.

(KNN Bureau)