India, GCC Sign ToR for Free Trade Agreement
Piyush Goyal says proposed FTA will boost trade, investment and energy security
- India and GCC sign Terms of Reference for FTA negotiations
- Agreement to define scope and modalities of trade talks
- Bilateral trade with GCC reached $178.56 billion in FY25
- FTA expected to boost jobs, investments and energy security
GG News Bureau
New Delhi, 5th Feb: India and the Gulf Cooperation Council (GCC) on Thursday signed the Terms of Reference (ToR) for the proposed India–GCC Free Trade Agreement, formally launching negotiations for a comprehensive trade pact.
The ToR was signed at Vanijya Bhawan between Additional Secretary and Chief Negotiator Ajay Bhadoo from India and Dr. Raja Al Marzouqi, Chief Negotiator of the GCC Secretariat. The signing took place in the presence of Union Commerce and Industry Minister Piyush Goyal, Minister of State Jitin Prasada, and Commerce Secretary Rajesh Agrawal.
Framework for FTA negotiations
The Terms of Reference will guide negotiations by defining the scope, structure and modalities of the proposed free trade agreement.
Speaking at the ceremony, Goyal said the FTA would act as a “force multiplier” for global growth. He added that the agreement would bring predictability and stability to trade ties, enable seamless flow of goods and services, attract investments and create employment opportunities.
He also stressed that the pact would strengthen food and energy security for both sides while deepening economic cooperation.
GCC highlights strategic partnership
Dr. Al Marzouqi noted that India and GCC countries share longstanding trade relations and said the signing of the ToR marks the formal beginning of negotiations for a mutually beneficial FTA. He added that the agreement would reinforce ties at a time of global economic uncertainty.
He also held discussions with Commerce Secretary Rajesh Agrawal on expanding economic cooperation in key sectors.
Strong trade and investment links
India’s trade with the GCC stood at $178.56 billion in FY 2024–25, including exports worth $56.87 billion and imports of $121.68 billion, accounting for over 15 per cent of India’s global trade. Bilateral trade has grown at an average annual rate of 15.3 per cent over the past five years.
India’s major 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.
The GCC, with a combined GDP of $2.3 trillion and a population of over 61 million, is also a major source of foreign investment for India, with cumulative investments exceeding $31 billion as of September 2025.
Nearly 10 million Indians live and work across the GCC region, underlining strong people-to-people ties alongside expanding economic engagement.
