New Delhi, February 24 (NationPress) The formal discussions for the anticipated free trade agreement (FTA) between India and the Gulf Cooperation Council (GCC) commenced on Tuesday following the signing of a joint declaration by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Al-Budaiwi.

“In light of global uncertainties, it is an ideal moment to initiate talks on establishing a strong trading framework that will leverage our mutual strengths,” stated Goyal.

During the signing event, the Commerce Minister highlighted that this declaration, along with the Terms of Reference (ToR) for the FTA signed on February 5, represents a pivotal development in India-GCC relations. He noted that the bond, founded on a shared historical and cultural heritage, will gain further momentum from a comprehensive and mutually advantageous FTA.

Al-Budaiwi pointed out that the FTA will be crucial in enhancing trade and investment relationships between India and the GCC, offering businesses much-needed predictability and certainty.

According to an official statement, the FTA is poised to fully unlock trade potential between India and the GCC after its signing, acting as a catalyst for global economic benefits while promoting export growth and enhancing economic integration between the two regions.

The GCC stands as India's largest trading partner bloc, with bilateral trade reaching $178.56 billion, which includes $56.87 billion in exports and $121.68 billion in imports for the fiscal year 2024-25, accounting for 15.42% of India’s total global trade. Over the past five years, trade between India and the GCC has consistently grown, averaging an annual growth rate of 15.3%.

Key exports from India to the GCC encompass engineering goods, rice, textiles, machinery, and gems and jewellery, while significant imports from the GCC include crude oil, LNG, petrochemicals, and precious metals like gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) with a GDP of $2.3 trillion at current prices, ranking 9th globally.

The GCC is also a major source of FDI for India, with cumulative investments surpassing $31.14 billion as of September 2025.

Furthermore, the GCC is home to nearly ten million individuals from the Indian community, serving as a living connection between both nations. These robust and lasting people-to-people ties are fundamental to the relationship, bolstered by the significant presence of Indian enterprises throughout the region.