New Delhi, Feb 5 (NationPress) India and the Gulf Cooperation Council (GCC) finalized the Terms of Reference on Thursday to facilitate negotiations for the India-GCC Free Trade Agreement (FTA). The Terms of Reference (ToR), which will shape the discussions, were signed by Additional Secretary and Chief Negotiator of the Department of Commerce, Ajay Bhadoo, and the Chief Negotiator of the GCC Secretariat General, Dr. Raja Al Marzouqi, at Vanijya Bhawan in the presence of Commerce and Industry Minister Piyush Goyal.

During the signing event, the Commerce Minister highlighted that this FTA will serve as a catalyst for global progress. He stressed that the agreement will provide predictability and stability, elevating the relationship between both parties. He expressed optimism that the FTA would facilitate the smooth flow of goods and services, attract investments, expand job opportunities, and enhance food and energy security in the region.

Dr. Al Marzouqi pointed out that the GCC and India have a historic trading relationship, and the signing of the ToRs signifies the start of negotiations toward a mutually advantageous FTA. He emphasized that this agreement would further strengthen ties between India and the GCC, especially in light of current global uncertainties.

During his visit, Dr. Al Marzouqi also met with Commerce Secretary Rajesh Agrawal to discuss enhancing overall economic collaboration between India and the GCC in areas of shared interest.

The India-GCC FTA has significant potential to broaden trade with an important region with which India shares deep-rooted historical ties. In the fiscal year 2024-25, India’s trade with the GCC reached $178.56 billion (with exports at $56.87 billion and imports at $121.68 billion), accounting for 15.42% of India's total global trade. Over the past five years, trade with the GCC has shown consistent growth, averaging an annual increase of 15.3%.

Key exports from India to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery. Major imports from the GCC primarily consist of crude oil, LNG, petrochemicals, and precious metals like gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) and have a GDP of $2.3 trillion, making them the 9th largest globally. The GCC region is also a vital source of foreign direct investment (FDI) for India, with cumulative investments surpassing $31.14 billion as of September 2025.

Additionally, the GCC is home to nearly ten million members of the Indian community, further strengthening the enduring people-to-people connections reinforced by the presence of Indian companies throughout the region.