New Delhi marked a pivotal moment in its trade diplomacy on Thursday as India and the Gulf Cooperation Council (GCC) signed the Terms of Reference (ToR) for a landmark Free Trade Agreement (FTA). This crucial step, announced by the Ministry of Commerce and Industry, sets the stage for deeper economic ties between India and the oil-rich GCC bloc.
The signing ceremony at Udyog Bhawan in the national capital saw Additional Secretary of Commerce and Chief Negotiator Ajay Bhambu inking the deal alongside Dr. Raja Al Marzouki, Chief Negotiator from the GCC Secretariat. The event was graced by Union Commerce and Industry Minister Piyush Goyal, Minister of State Jitin Prasad, and Commerce Secretary Rajesh Agrawal.
Minister Goyal hailed the agreement as a game-changer for global trade. ‘This FTA will bring certainty and stability, strengthening bilateral relations,’ he stated. He emphasized its potential to facilitate seamless flow of goods and services, attract investments, generate jobs, and enhance food and energy security in the region.
Dr. Al Marzouki echoed the optimism, noting the historic trade links between India and GCC. ‘These ToR mark the beginning of negotiations for a mutually beneficial FTA, crucial amid global uncertainties,’ he said.
India’s trade with GCC countries reached $178.56 billion in FY 2024-25, accounting for 15.42% of its global trade. Exports stood at $56.87 billion, while imports were $121.68 billion. Over the past five years, this trade has grown at an average annual rate of 15.3%, underscoring vast potential for expansion through the FTA.
This agreement promises to unlock new opportunities in sectors like energy, petrochemicals, agriculture, and services, positioning both sides for sustained economic growth.