India and GCC Sign Terms of Reference for FTA

• 06 Feb 2026

Source: PIB 

India and the Gulf Cooperation Council (GCC) have officially signed the Terms of Reference (ToR) to guide negotiations for a comprehensive Free Trade Agreement (FTA), marking a significant step toward bolstering economic ties and strategic partnership. 

• Objective: The ToR defines the scope and modalities of the upcoming FTA negotiations. 
• Economic Impact: The agreement aims to enable the seamless flow of goods and services, attract investments, expand job opportunities, and ensure food and energy security. 
• Trade Statistics: 
  • Bilateral Trade: India's trade with GCC reached USD 178.56 billion in FY 2024-25 (Exports: USD 56.87 billion; Imports: USD 121.68 billion), accounting for 15.42% of India’s global trade. 
  • Growth: Trade has grown at an annual average rate of 15.3% over the last five years. 
  • India’s Key Exports: Engineering goods, rice, textiles, machinery, gems, and jewellery. 
  • India’s Key Imports: Crude oil, LNG, petrochemicals, and gold. 
• Investment & Diaspora: The GCC is a major source of Foreign Direct Investment (FDI) for India (cumulative USD 31.14 billion as of Sept 2025) and is home to nearly 10 million Indians. 

Gulf Cooperation Council (GCC) 

• The GCC, established in 1981, is a regional bloc of six Arab states (Saudi Arabia, the UAE, Bahrain, Qatar, Kuwait and Oman) formed to promote political, economic and cultural unity based on shared Islamic values, tribal ties and common security interests.  
• Operating through the Supreme Council, Ministerial Council and a Secretariat in Riyadh, the GCC occupies a strategically vital location along the Persian Gulf, connecting major global trade routes. 
• The bloc represents a combined market of around 61.5 million people with a GDP of approximately USD 2.3 trillion, ranking ninth globally, and plays a crucial role in global energy and trade markets. 

Read more: India GCC Economic and Strategic Links