4 min readNew DelhiUpdated: Feb 6, 2026 03:56 AM IST
India and the six-nation bloc of Middle Eastern nations, the Gulf Cooperation Council (GCC), inked terms of reference (ToR) on Thursday for formally launching negotiations for a free trade agreement (FTA).
The ToR outline the scope and modalities of a proposed trade pact. Commerce and Industry Minister Piyush Goyal presided over the signing ceremony of the ToRs with GCC.
GCC is a union of six countries in the Gulf region — Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.
Goyal said that the trade deal will help boost bilateral trade and investments between the two. “The two trading partners have been trading among each other for over 5,000 years,” he told reporters, adding that about 10 million Indians are living and working in the GCC region.
“It is most appropriate that we now enter into a much stronger and robust trading arrangement which will enable a greater free flow of goods, services, bring predictability and stability to policy, help encourage a greater degree of investments,” Goyal said. He said the agreement will also encourage the food and energy security of the GCC nations, as well as India. While India is a major food grain producer in the world, GCC nations are oil and gas exporters.
“We already have a very robust, nearly $179 billion bilateral trade. I believe a number of products and services required by the GCC countries can be provided by our young, very talented and skilled Indians, as the GCC countries can help us with further diversification and growth of our energy sources,” he said. About 10 million Indians at present are living and working in the GCC region.
“We will also get a foothold to grow Indian infrastructure and the infrastructure in the GCC, together with the high-quality companies that are working in the space of infrastructure. Our petrochemical industry will hugely benefit with this partnership,” Goyal said.
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Resuming FTA talks amid global unrest
FTA talks with the GCC were stalled as it deferred negotiations with all countries during the the third round. The first two rounds were held in 2006 and 2008, respectively. GCC’s chief negotiator, Marzouqi, has termed the pact ‘important’ amid global uncertainties
India has already implemented an FTA with the UAE in May 2022, and signed a Comprehensive Economic Partnership Agreement with Oman in December 2025.
GCC’s chief negotiator, Raja Al Marzouqi, said the pact is important at a time of global uncertainties. “So it’s a message, it’s a signal for the whole globe, and it’s important for us at this time to try to be more cooperative to avoid any risk that our global economy is facing as a result of uncertainty,” he said.
Additional Secretary in the Department of Commerce Ajay Bhadoo is India’s chief negotiator for the pact.
Launch of FTA talks with the GCC would be a kind of resumption of the negotiations, as the earlier two rounds of negotiations were held in 2006 and 2008 between the two regions.
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The third round did not happen as GCC deferred its negotiations with all countries and economic groups. India predominantly imports crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals.
(With inputs from PTI )