India, GCC sign Joint Statement to begin FTA negotiations

India and the Gulf Cooperation Council (GCC) on Tuesday formally launched negotiations for a comprehensive Free Trade Agreement (FTA) with the signing of a Joint Statement in New Delhi.

The Joint Statement was signed by Union Minister of Commerce and Industry Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi, in the presence of senior officials and delegations from both sides.

Speaking on the occasion, Goyal said the Joint Statement, along with the Terms of Reference for the FTA signed earlier this month, marks a key step forward in India’s economic engagement with GCC countries. He said the proposed agreement would build on the deep-rooted historical, cultural and commercial ties between the two sides.

The minister said that at a time of global economic uncertainty, the decision to begin negotiations for a robust and mutually beneficial trade arrangement was timely and would help harness complementarities between India and the GCC economies.

GCC Secretary General Jasem Mohamed Albudaiwi said the FTA would play an important role in strengthening trade and investment ties by providing greater predictability and certainty to businesses on both sides.

According to the Ministry of Commerce and Industry, the agreement holds strong potential to unlock and expand trade between India and the GCC region. The GCC is India’s largest trading partner bloc, with bilateral trade reaching USD 178.56 billion in FY 2024–25. India’s exports to the region stood at USD 56.87 billion, while imports were valued at USD 121.68 billion. The bloc accounts for over 15 per cent of India’s total global trade.

Over the past five years, India’s trade with GCC countries has registered an average annual growth rate of 15.3 per cent.

India’s key exports to the region include engineering goods, rice, textiles, machinery, and gems and jewellery. Major imports from GCC countries comprise crude oil, LNG, petrochemicals, and precious metals such as gold.

Collectively, the GCC represents a market of around 61.5 million people and a combined GDP of approximately USD 2.3 trillion, ranking among the top ten global economic groupings. 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 Indians reside in GCC countries, contributing to strong people-to-people ties and acting as a bridge between the two regions. Indian companies also maintain a substantial presence across GCC member states.