India and the Gulf Cooperation Council (GCC) on Tuesday formally launched negotiations for a comprehensive Free Trade Agreement (FTA) by signing a joint statement, marking a major milestone in their economic partnership.
Union Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Al Budaiwi endorsed the agreement to begin talks. Announcing the development on X, Goyal said the signing builds on the Terms of Reference finalised on February 5, 2026, and formally initiates negotiations for a broad-based and mutually beneficial pact.
He described the move as a significant step toward deeper collaboration in strategic areas such as trade in goods and services, customs procedures, digital trade, emerging technologies, and enhanced investment flows between India and the six GCC member states. In a time of global economic uncertainty, Goyal noted, the launch of negotiations is both timely and forward-looking, allowing both sides to leverage their complementarities.
Al Budaiwi said the FTA would inject predictability and certainty for businesses, strengthening trade and investment ties. According to the Ministry of Commerce and Industry, the GCC is India’s largest trading partner bloc, with bilateral trade reaching USD 178.56 billion in FY 2024-25, accounting for over 15 percent of India’s global trade.
The GCC nations, with a combined GDP of about USD 2.3 trillion and a population of 61.5 million, are also a major source of energy imports and foreign investment for India, while hosting nearly 10 million Indians who form a vital bridge between the two regions.
