New delhi: India and the GCC on Thursday signed Terms of Reference for the India-GCC Free Trade Agreement in New Delhi. A statement from the Indian Ministry of Commerce and Industry noted that this agreement was signed between Additional Secretary and Chief Negotiator, Department of Commerce of India Ajay Bhadoo, and Chief Negotiator, Secretariat General of the GCC Raja Al-Marzouqi.
According to Kuwait News Agency, Indian Minister of Commerce and Industry Piyush Goyal, Minister of State for Commerce and Industry Jitin Prasada, and Commerce Secretary Rajesh Agrawal were present at the event. The Terms of Reference will guide the negotiations for the GCC-India FTA by defining its scope and modalities.
Goyal highlighted that the FTA will act as a force multiplier for global good, bringing predictability and stability to the relationship between the two sides. He expressed confidence that the FTA will enable a seamless flow of goods and services, attract investments, expand job opportunities, and foster food and energy security for the region, thereby elevating the deep economic ties between India and the GCC.
Al-Marzouqi emphasized the historic trade relations between the GCC and India and expressed that the signing marks the commencement of negotiations towards a mutually beneficial FTA. He also stressed that the FTA will further reinforce relations between India and the GCC amidst ongoing global uncertainties.
The statement pointed out that India's trade with the GCC stood at USD 178.56 billion in FY 2024-25, accounting for 15.42 percent of India's global trade. Indian exports to GCC include engineering goods, rice, textiles, machinery, and gems and jewelry, while major imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold.
The GCC countries represent a market of 61.5 million people and USD 2.3 trillion in terms of GDP, ranking 9th globally in this category. The GCC region is also a significant source of FDI for India, with cumulative investments exceeding USD 31.14 billion as of September 2025.