GCC expects FTA with India to reduce global uncertainty

Share this Post

India has signed the Terms of Reference (ToR) for a potential Free Trade Agreement (FTA) with the 6-nation Gulf Cooperation Council. GCC comprises of Saudi Arabia, UAE, Oman, Qatar, Kuwait, and Bahrain. India already has an FTA with the UAE, has finalized an FTA with Oman. Saudi Arabia is the largest GCC member in terms of economy, with a population and land area larger than that of all other GCC members combined.

India’s Commerce and Industry Minister Piyush Goyal said that discussions were underway for nearly 2 decades between India and the GCC, projecting that a stronger, robust trading arrangement will increase free flow of goods as well as encourage investments. Stating that an agreement with the GCC will further strengthen relations, create job opportunities for Indians, encourage food and energy security for both sides, he termed it a force multiplier for global good.

India already has $179 billion worth of bilateral trade with GCC member countries, while the Minister described over 1 crore Indians working in the GCC countries as the living bridge between both economies while they power the GCC’s economy. He added that a comprehensive FTA with GCC will help sectors like food processing, give opportunities to farmers and fishermen to export value-added products, as well as provide opportunities to ICT companies in the ever-growing GCC market.

Chief Negotiator from GCC Dr. Raja Al Marzouqi stated that the FTA can reduce global uncertainty and free trade between GCC and India, like it has taken place for thousands of years.

On 24th December 2025, sources had told CNBC-TV18 that the GCC had agreed to de-couple talks for a Bilateral Investment Treaty (BIT) with the ToR for an FTA. ToR is a precursor to an FTA, which defines the scope, rules, and framework for an FTA. A BIT between two countries or blocs determines rules for mutual investment promotion and protection for investors.

Sources indicated that there is a possibility of proceeding for talks for an FTA with the GCC if talks for a BIT are concluded shortly, and in case the delay continues, India will proceed with FTA talks with GCC members Qatar and Bahrain.

In 2022, India and the GCC had announced resumption of negotiations after a hiatus of several years, for the potential FTA whose idea was initially floated in 2004. GCC is an important trading partner of India apart from being a place with historical ties and presence of nearly 1 crore Indian workers. India’s economic linkages with the GCC have steadily risen due to growth in oil imports. During FY 2023-24, India-GCC bilateral trade stood at $161.59 billion. While India’s exports were $56.3 billion in FY 2023-24, its imports were $105.3 billion in FY 2023-24.

(Edited by : Srabastee Biswas)

Source link

Share this Post