India, GCC sign joint statement to launch free trade agreement negotiations

India and the Gulf Cooperation Council (GCC) have formally launched negotiations for a comprehensive Free Trade Agreement (FTA) after signing a joint statement aimed at deepening trade and investment ties between the two sides, a government statement said.

The joint statement was signed by Union commerce and industry minister Piyush Goyal and GCC secretary general Jasem Mohamed Albudaiwi in New Delhi, marking the formal start of negotiations for a “comprehensive and mutually beneficial agreement”.

Goyal said the joint statement, along with the Terms of Reference (ToR) signed earlier, marks “a significant milestone in the relationship between India and GCC countries”. He added that ties rooted in shared history and cultural linkages would receive fresh momentum through a broad-based FTA.

He underlined that “amidst global uncertainties, it is most opportune that discussions are starting on negotiating a robust trading arrangement which would harness mutual synergies and complementarities,” according to the cabinet statement.

Albudaiwi said the proposed agreement would serve as “an important tool to further strengthen trade and investment ties between India and GCC countries by infusing predictability and certainty for businesses”.

The GCC remains India’s largest trading partner bloc, with bilateral trade reaching $178.56 billion in FY 2024-25, including exports worth $56.87 billion and imports of $121.68 billion, accounting for 15.42% of India’s global trade. Trade between the two sides has grown at an average annual rate of 15.3% over the past five years.

India’s key exports to GCC countries 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.

Collectively, GCC economies represent a market of about 61.5 million people and a combined GDP of $2.3 trillion at current prices, ranking ninth globally. The region is also a major source of foreign investment for India, with cumulative FDI exceeding $31.14 billion as of September 2025.

Nearly 10 million Indian nationals live across GCC countries, forming what officials described as a “living bridge” strengthening economic and people-to-people ties, alongside the strong presence of Indian companies across the region.