New Delhi, February 5, 2026: India and the Gulf Cooperation Council (GCC) have signed the Terms of Reference (ToR) for the India-GCC Free Trade Agreement (FTA) at Vanijya Bhawan, New Delhi. The agreement was signed by Shri Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator, Secretariat General of the GCC, in the presence of Union Minister of Commerce and Industry Shri Piyush Goyal, Union Minister of State Shri Jitin Prasada, and Commerce Secretary Shri Rajesh Agrawal.
The ToRs will define the scope and modalities for negotiations, laying the foundation for a mutually beneficial FTA aimed at strengthening economic ties between India and the GCC.
Shri Piyush Goyal described the FTA as a “force multiplier for the global good,” highlighting that it will enhance predictability, stability, and seamless flow of goods and services. The FTA is expected to attract investments, expand job opportunities, and promote food and energy security, further elevating India’s strategic economic partnership with the GCC.
Dr. Raja Al Marzouqi emphasized the historic trade relationship between India and the GCC, noting that the signing of the ToRs marks the start of negotiations toward an FTA that will reinforce bilateral ties, especially amid prevailing global uncertainties. During his visit, Dr. Al Marzouqi also met with Commerce Secretary Shri Rajesh Agrawal to discuss boosting overall economic cooperation and exploring areas of mutual interest.
India’s trade with the GCC reached USD 178.56 billion in FY 2024-25, with exports at USD 56.87 billion and imports at USD 121.68 billion, accounting for 15.42% of India’s global trade. Key exports include engineering goods, rice, textiles, machinery, and gems & jewelry, while key imports include crude oil, LNG, petrochemicals, and precious metals such as gold.
The GCC, home to 61.5 million people with a GDP of USD 2.3 trillion (2024), is also a major source of foreign direct investment (FDI) for India, with cumulative investments exceeding USD 31.14 billion as of September 2025. The region hosts nearly ten million members of the Indian community, further reinforcing strong people-to-people ties.
The India–GCC FTA is expected to unlock significant trade potential, strengthen investment flows, and bolster India’s economic engagement with a strategically important region.