India–GCC Begin FTA Talks With Signing Of Joint Statement

New Delhi, Feb 25 (KNN) Negotiations for an India–Gulf Cooperation Council (GCC) free trade agreement (FTA) were formally launched through the signing of a Joint Statement in New Delhi on Thursday by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi.

Goyal said the Joint Statement, along with the Terms of Reference (ToR) signed earlier this month, marks a significant milestone in India-GCC relations. 

He noted that the proposed agreement would deepen longstanding trade and cultural ties and provide a stable framework for cooperation amid global uncertainty.

Albudaiwi said the FTA would strengthen trade and investment flows by bringing greater predictability and certainty for businesses.

Strong Trade Linkages

The GCC is India’s largest trading partner bloc. Bilateral trade reached USD 178.56 billion in FY 2024–25, including exports of USD 56.87 billion and imports of USD 121.68 billion, accounting for 15.42 per cent of India’s total trade. 

Trade has grown at an average annual rate of 15.3 per cent over the past five years.

India’s key exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery, while imports mainly comprise crude oil, LNG, petrochemicals and gold. 

The GCC, with a combined GDP of about USD 2.3 trillion and a population of 61.5 million, is also a major investor in India, with cumulative FDI exceeding USD 31.14 billion as of September 2025.

Nearly 10 million Indians live and work in GCC countries, forming a strong people-to-people link that underpins economic ties.

The proposed FTA is expected to expand and diversify trade, enhance economic integration and further strengthen the partnership between India and the GCC.

(KNN Bureau)