New Delhi: In a significant diplomatic move in New Delhi, India and the six-nation Gulf Cooperation Council (GCC) officially signed a joint statement on Tuesday to advance a proposed Free Trade Agreement (FTA). The agreement was formalized by India’s Commerce and Industry Minister Piyush Goyal and GCC Secretary-General Jasem Mohamed Albudaiwi.
Minister Goyal characterized the signing as a major milestone that builds upon the Terms of Reference (ToR) established on February 5, 2026. He noted that the partnership, which is historically and culturally rooted, will gain strategic impetus through this mutually beneficial trading arrangement, particularly as both sides look to harness synergies amid global economic uncertainties. Secretary-General Albudaiwi added that the FTA would provide necessary predictability and certainty for businesses, strengthening investment ties between the two regions.
The economic stakes for this agreement are substantial, as the GCC is currently India’s largest trading partner bloc. In the 2024-25 fiscal year, bilateral trade reached $178.56 billion, representing over 15% of India’s total global trade. India’s trade with the region has seen an average annual growth rate of 15.3% over the last five years.
India’s primary exports to the GCC include rice, textiles, engineering goods, machinery, and jewelry. Conversely, India relies on the region for critical imports such as crude oil, LNG, petrochemicals, and precious metals like gold. The GCC represents a market of 61.5 million people with a collective GDP of $2.3 trillion, making it the ninth-largest economy globally at current prices.
Beyond trade, the region is a vital source of capital for India, with cumulative Foreign Direct Investment (FDI) from GCC nations exceeding $31.14 billion as of September 2025. Officials believe the finalized FTA will act as a “force multiplier,” facilitating the diversification of exports and deepening economic integration between India and the Middle Eastern bloc.
