MUMBAI : The move was marked by the signing of a Joint Statement in New Delhi by India’s Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi.
Goyal described the signing of the Joint Statement, along with the Terms of Reference for the FTA signed earlier this month, as a significant advancement in India’s economic engagement with GCC countries. He said the proposed agreement would build upon the deep-rooted historical, cultural and commercial ties shared between India and the Gulf region.
“At a time of global economic uncertainty, the decision to begin negotiations for a robust and mutually beneficial trade arrangement is both timely and forward-looking,” Goyal said, emphasizing that the pact would help harness complementarities between the two economies.
Albudaiwi echoed similar optimism, stating that the FTA would strengthen trade and investment relations by providing greater predictability and certainty to businesses on both sides.
The proposed agreement comes against the backdrop of booming trade ties. The GCC is India’s largest trading partner bloc, with bilateral trade reaching $178.56 billion in FY 2024–25.
India exported goods worth $56.87 billion to the region, while imports stood at $121.68 billion. The GCC accounts for more than 15 per cent of India’s total global trade, underscoring its strategic importance.
Over the past five years, trade between India and GCC nations has grown at an average annual rate of 15.3 per cent, reflecting expanding economic engagement.
India’s major exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery. In return, the Gulf region supplies India with critical energy resources such as crude oil and liquefied natural gas (LNG), along with petrochemicals and precious metals including gold.
Collectively, the GCC represents a market of around 61.5 million people with a combined GDP of approximately $2.3 trillion, placing it among the top ten global economic groupings.
The region is also a significant source of foreign direct investment (FDI) into India. As of September 2025, cumulative GCC investments in India exceeded $31.14 billion.
India and the GCC have initiated negotiations for a landmark Free Trade Agreement (FTA) worth $178 billion, aiming to enhance economic ties. The agreement seeks to capitalize on historical and commercial connections, providing stability and predictability for businesses. With the GCC as India's largest trading partner, this FTA is expected to bolster trade and investment relations significantly.