Commerce Minister Piyush Goyal with chief negotiators during the signing of the Terms of Reference for the FTA between India and the Gulf Cooperation Council (GCC). Credit: X/@PiyushGoyal
India and the six-nation bloc of Middle Eastern nations, the Gulf Cooperation Council (GCC), inked terms of reference on Thursday for starting talks for a Free Trade Agreement (FTA).
The terms of reference (ToR) outline the scope and modalities of a proposed trade pact. Commerce and Industry Minister Piyush Goyal presided over the signing ceremony of the ToRs with GCC.
GCC is a union of six countries in the Gulf region — Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.
Mr. Goyal said that the agreement will help boost bilateral trade and investments between the two. He added that about 10 million Indians are living and working in the GCC region.
India has already implemented a free trade pact with the UAE in May 2022.
India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025.
Launch of FTA talks with the GCC would be a kind of resumption of the negotiations, as the earlier two rounds of negotiations were held in 2006 and 2008 between the two regions.
The third round did not happen as GCC deferred its negotiations with all countries and economic groups.
India imports predominantly crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals to these countries.
India’s exports to the GCC grew by about one per cent to about $57 billion in 2024-25 against $56.32 billion in 2023-24. Imports rose by 15.33% to $121.7 billion in 2024-25 from $105.5 billion in 2023-24.
Bilateral trade has increased to $178.7 billion in 2024-25 from $161.82 billion in 2023-24.
The UAE was India’s third-largest trading partner in the last fiscal. India’s exports to the nation stood at $36.63 billion, while imports were $63.40 billion in the last fiscal, resulting in a trade deficit of $26.76 billion in 2024-25.
Saudi Arabia was India’s fifth-largest trading partner during the last fiscal.
Exports to the kingdom were $11.75 billion, while imports stood at $30.12 billion, leading to a trade deficit of $18.36 billion in 2024-25.
Qatar ranked as India’s 22nd-largest trading partner last fiscal. Exports stood at $1.68 billion, while imports were USD 12.46 billion, leaving a trade deficit of $10.78 billion in 2024-25. India mainly imports liquefied natural gas (LNG) from Qatar, while exporting products ranging from cereals to meat, fish, chemicals and plastics.
Oman was the 28th largest trading partner of India in 2024-25. Exports stood at $4 billion, while imports aggregated to $6.54 billion. The trade deficit was 2.48 billion.
Kuwait ranked 29th among India’s trading partners in 2024-25. Exports stood at $1.93 billion, while imports were $8.28 billion, leading to a trade deficit of $6.35 billion.
Similarly, India’s outbound shipments to Bahrain, which is the 65th largest trading partner of India, were $797.47 million in the last fiscal. Imports were $843.44 million, leaving a trade deficit of $45.97 million in 2024-25.
Published – February 05, 2026 03:05 pm IST
