New Delhi, Feb 24 (IANS) The negotiations for the proposed free trade agreement between India and the Gulf Cooperation Council (GCC) were formally launched here on Tuesday with the signing of a joint statement by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Al-Budaiwi.

“Amidst global uncertainties, it is most opportune that discussions are starting on negotiating a robust trading arrangement which would harness mutual synergies and complementarities,” Goyal said.

During the signing ceremony, the Commerce Minister emphasised that the statement, along with the Terms of Reference (ToR) for the FTA, which were signed on February 5, marked a significant milestone in the relationship between India and GCC countries. He underscored that the relationship, which is deeply rooted in shared history and cultural linkages, would get further impetus from a broad-based and mutually beneficial FTA.

Al-Budaiwi emphasised that the FTA will serve as an important tool to further strengthen trade and investment ties between India and GCC countries by infusing predictability and certainty for businesses.

The FTA is expected to unlock the full potential of trade between India and the GCC upon signing and would be a force multiplier for global good, while facilitating the expansion and diversification of exports and strengthening economic integration between the two sides, according to an official statement.

GCC is India’s largest trading partner bloc with bilateral trade reaching $178.56 billion, comprising exports of $56.87 billion and imports to the tune of $121.68 billion in FY 2024-25, accounting for 15.42 per cent of India’s global trade. In the last five years, India’s trade with the GCC has expanded steadily, registering an annual average growth rate of 15.3 per cent.

Key exports from India to GCC include engineering goods, rice, textiles, machinery, gems and jewellery. Key sectors of imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) and $2.3 trillion in terms of GDP at current prices, ranking 9th globally in this category. The GCC region is also a significant source of FDI for India, with cumulative investments exceeding $31.14 billion as of September 2025.

The GCC is also home to nearly ten million members of the Indian community, acting as a living bridge between both countries. These strong and enduring people-to-people connections form the foundation of the relationship between India and GCC countries, which is further reinforced by the substantial presence of Indian companies across the region.

–IANS

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