India and the Gulf Cooperation Council (GCC) have signed the Terms of Reference for a Free Trade Agreement in New Delhi. The move marks a formal step towards a comprehensive trade pact between India and the six-member Gulf bloc. The agreement is expected to deepen economic ties, improve market access, and strengthen long-term trade cooperation.
Formal Start to FTA Negotiations
The signing of the Terms of Reference provides the framework for negotiations on the India-GCC Free Trade Agreement. It sets the scope, process, and priorities for talks between the two sides. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Trade and Energy Significance
India’s trade with GCC countries currently stands at about 170 billion dollars. The proposed FTA is seen as important for diversifying India’s energy sources and improving supply security. It may also support broader trade expansion in goods and services across the region.
Impact on Key Sectors
The agreement is expected to benefit several Indian sectors, including:
- Food processing
- Infrastructure
- Petrochemicals
- Information and communication technology
The pact may also improve export opportunities and investment flows, especially in high-growth sectors.
Indian Diaspora and Wider Trade Context
Around 10 million Indians live and work in GCC countries, making the region strategically important for India. The proposed agreement is part of India’s wider push to expand its free trade network. It also comes alongside progress on other trade deals, including the India-US bilateral arrangement, which is expected to become India’s ninth FTA.
Last Modified: April 27, 2026