India, GCC sign statement to start FTA talks

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, according to the Indian media reports.

The Joint Statement was signed by India's Minister of Commerce and Industry, Piyush Goyal, and GCC Secretary General Jasem Mohamed Albudaiwi.

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.

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 $178.56 billion in FY 2024–25. India’s exports to the region stood at $56.87 billion, while imports were valued at $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 $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 $31.14 billion as of September 2025.