India and the Gulf Cooperation Council (GCC), a bloc of six Middle Eastern countries, have agreed on the terms to formally begin negotiations for a Free Trade Agreement (FTA). The two sides signed the Terms of Reference (ToR) at a press conference in New Delhi, in the presence of Commerce and Industry Minister Piyush Goyal and GCC chief negotiator Raja Al Marzoqi. 

“India and the GCC are two partners who have been trading for over 5,000 years. Now, it is the most appropriate time to enter into a much stronger and more robust trading arrangement, which will enable a greater free flow of goods and services, bring predictability and stability to policy, provide a better degree of encouragement, and take our bilateral relations to greater heights,” Goyal said.  

Highlighting the importance of this partnership, the minister said, “It will provide food and energy security to both India and GCC and together will be the force multiplier for the world.” 

The GCC includes Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain. 

“At the time, when globalisation is under attack and uncertainty is rising, these talks for FTA give a message to the whole world that there is a need to be more cooperative to avoid the risks the global economy is already facing,” Marzoqi said. 

Goyal said that India and GCC have been discussing it for over two decades, noting that around 10 million Indians live and work in GCC countries. 

India already has a free trade agreement with the UAE, which came into force in May 2022. India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025. 

The start of FTA talks with the GCC marks a return to negotiations. Earlier, talks were held in 2006 and 2008, but the third round was postponed after the GCC decided to pause trade negotiations with all countries and economic groups. 

India’s main imports from GCC 

India mainly imports crude oil and natural gas from Gulf nations such as Saudi Arabia and Qatar. It exports products such as pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals to the region. 

India’s overall trade with GCC 

India’s exports to GCC countries grew by about 1% to nearly $57 billion in 2024–25. Imports rose sharply by 15.33% to $121.7 billion. As a result, total trade between India and the GCC increased to $178.7 billion from $161.82 billion a year earlier. 

The UAE was India’s third-largest trading partner. India exported $36.63 billion worth of goods to the country while imports stood at $63.40 billion, creating a trade deficit of $26.76 billion. 

Saudi Arabia, which ranked fifth among India’s trading partners, exports $11.75 billion and imports $30.12 billion, leading to a trade deficit of $18.36 billion. 

Qatar was India’s 22nd-largest trading partner. Exports were $1.68 billion while imports, mainly liquefied natural gas (LNG), stood at $12.46 billion, resulting in a trade deficit of $10.78 billion. 

Oman ranked 28th, with exports of $4 billion and imports of $6.54 billion, leaving a trade deficit of $2.48 billion. 

Kuwait was India’s 29th-largest trading partner. Exports stood at $1.93 billion while imports were $8.28 billion, leading to a trade deficit of $6.35 billion. 

Bahrain ranked 65th among India’s trading partners. Exports stood at $797.47 million and imports stood at $843.44 million, resulting in a trade deficit of $45.97 million in 2024–25.