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India, GCC sign terms of reference to start FTA negotiations

06 Feb 2026 Evaluate

India and Gulf Cooperation Council (GCC) have signed the terms of reference on February 05, 2025, officially beginning talks for a free trade agreement (FTA). The terms of reference (ToR) outline the scope and modalities of a proposed trade pact. GCC is a union of six countries in the Gulf region - Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.

Commerce and Industry Minister Piyush Goyal has said that the agreement will help boost bilateral trade and investments between the two. He stated ‘The two trading partners have been trading amongst each other for over 5,000 years.’ He mentioned around 10 million Indians live and work in the GCC region.

Moreover, he stated ‘It is most appropriate that we now enter into a much stronger and robust trading arrangement which will enable a greater free flow of goods, services, bring predictability and stability to policy, help encourage a greater degree of investments.’ Further, he said that the agreement will also enhance food and energy security of the GCC nations, as well as India. While India is a leading global producer of food grains, GCC nations are oil and gas exporters.


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