India and the Gulf Cooperation Council (GCC) have formally launched negotiations for a comprehensive Free Trade Agreement (FTA) with the signing of a Joint Statement in New Delhi. The Joint Statement, along with the Terms of Reference (ToR) signed in February 2026, marks a major milestone in strengthening India–GCC economic relations.
About Gulf Cooperation Council (GCC)
- It is a regional intergovernmental political, economic and security alliance
- Members (6): United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait
- Established in 1981.
- Headquarters: Riyadh, Saudi Arabia.
- Mandate: Coordination, integration and interconnection among member states.
- Main Organs
- Supreme Council (with Commission for Settlement of Disputes)
- Ministerial Council
- Secretariat General
Economic Significance of GCC
- Population: 61.5 million (2024)
- GDP (current prices): US$ 2.3 trillion
- Ranks 9th globally in GDP terms
- Major global energy supplier
India–GCC Trade Relations
The GCC is India’s largest trading partner bloc.
Bilateral Trade (FY 2024–25)
- Total Trade: US$ 178.56 billion
- Exports: US$ 56.87 billion
- Imports: US$ 121.68 billion
- Accounts for 15.42% of India’s global trade
- Average annual trade growth (last 5 years): 15.3%
Key Export Items from India: Engineering goods, Rice, Textiles, Machinery, Gems and jewellery
Key Imports from GCC: Crude oil, Liquefied Natural Gas (LNG), Petrochemicals, Gold and precious metals
Investment & Diaspora Linkages
- GCC cumulative FDI in India: US$ 31.14 billion (as of September 2025)
- Nearly 10 million Indians reside in GCC countries
- Strong people-to-people and business linkages
Significance of India–GCC FTA
The proposed FTA is expected to:
- Expand and diversify bilateral trade
- Enhance energy security cooperation
- Boost investment flows
- Improve market access for Indian goods and services
- Strengthen supply chain integration
- Deepen economic integration
- It may serve as a force multiplier in India’s trade strategy, particularly in West Asia.