India and the Gulf Cooperation Council have officially signed the Terms of Reference to guide negotiations for the India-GCC Free Trade Agreement. The signing took place at the Vanijya Bhawan in the presence of Commerce and Industry Minister Piyush Goyal. This agreement will define the scope and modalities of the upcoming talks.
Commerce Minister Piyush Goyal highlighted the significance of the FTA, stating that it will enhance global cooperation. He emphasized that the agreement will bring stability and predictability to the relationship between the two sides, fostering economic growth. Goyal expressed confidence that the FTA will facilitate the smooth flow of goods and services, attract investments, and create job opportunities, ultimately enhancing economic ties.
Dr. Raja Al Marzouqi, the GCC Secretariat General’s Chief Negotiator, emphasized the historical trade relations between the GCC and India. He mentioned that the signing of the Terms of Reference marks the beginning of negotiations for a mutually beneficial FTA. Al Marzouqi stressed that the agreement will strengthen ties between India and the GCC, especially in light of current global uncertainties.
The India-GCC Free Trade Agreement holds immense potential to boost trade with a region that has longstanding trade ties with India. In the fiscal year 2024-25, India’s trade with the GCC amounted to $178.56 billion, with exports at $56.87 billion and imports at $121.68 billion. Over the past five years, trade between India and the GCC has shown steady growth, with an average annual growth rate of 15.3 percent.
