India–GCC Free Trade Agreement

• 25 Feb 2026

Source: PIB

India and the Gulf Cooperation Council (GCC) signed a Joint Statement to advance negotiations on the India–GCC Free Trade Agreement, following the Terms of Reference agreed earlier. The move aims to deepen economic cooperation and marks a significant milestone in India–GCC relations.

• India - GCC Trade: The GCC is India's largest trading partner bloc, accounting for 15.42% of India’s global trade.
  • Bilateral trade reached USD 178.56 billion in FY 2024-25 (Exports: USD 56.87 billion; Imports: USD 121.68 billion), registering a steady annual average growth rate of 15.3% over the past five years.
  • Key Indian Exports: India primarily exports engineering goods, rice, textiles, machinery, and gems and jewellery to the GCC.
  • Key Indian Imports: Imports from the GCC are dominated by crude oil, Liquefied Natural Gas (LNG), petrochemicals, and precious metals like gold.
• Economic Significance: The GCC represents a massive market of 61.5 million people with a USD 2.3 trillion GDP (9th globally), and serves as a major source of Foreign Direct Investment (FDI) for India (cumulative investments exceeding USD 31.14 billion as of September 2025).
• Diaspora and Soft Power: The region hosts nearly 10 million Indian diaspora members, acting as a vital "living bridge" that reinforces people-to-people connections and supports the substantial presence of Indian companies in the Gulf.

Gulf Cooperation Council (GCC)

• It is a regional political and economic alliance established in 1981, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
• Formed in response to regional tensions such as the Iranian Revolution (1979) and the Iran–Iraq War (1980–1988), the GCC aims to promote economic, security, cultural, and social cooperation among its members.
• GCC headquartered in Riyadh, Saudi Arabia, its organisational structure includes the Supreme Council, the highest authority composed of member state heads with a rotating presidency.

Read more: India GCC Economic and Strategic Links