India and the six-nation Gulf Cooperation Council have signed Terms of Reference to start negotiations on a free trade agreement aimed at boosting the flow of goods, services, and investments
India and the six-member Gulf Cooperation Council—which includes Saudi Arabia and the United Arab Emirates—have agreed on the terms required to begin negotiations for a free trade agreement, Minister of Commerce and Industry of India, Piyush Goyal announced on Thursday.
The signing of the Terms of Reference (ToR) establishes the framework for the two sides to commence formal discussions. Goyal said the proposed trading arrangement would be “robust” and enable a greater free flow of goods and services while encouraging stronger
investment ties.
Move adds momentum to India’s economic outreach
The decision marks another step in India’s efforts to deepen economic engagement with key global partners. The development comes only weeks after a brief but significant visit to India by Sheikh Mohamed bin Zayed Al Nahyan.
The UAE leader was in India for just three hours, during which he met Prime Minister Narendra Modi and reviewed the full scope of bilateral cooperation. The visit drew attention due to its unusually short duration but underscored the strategic closeness between the two countries.
This comes days after India and the United States announced their long-pending trade deal. The announcement was made by US President Donald Trump on social media, who said that the tariff on India would be cut to 18 per cent.
India also concluded its trade deal with the European Union after two decades of negotiations. Under the agreement, India will eliminate or reduce tariffs on 96.6 per cent of EU exports. Tariffs on EU cars will be brought down from 110 per cent to 10 per cent, while duties on car parts will be phased out over the next decade. Most tariffs on machinery, chemicals, and pharmaceuticals will also be removed.
End of Article
8wh4o3