India-GCC Trade Deal Marks Major Milestone in Bilateral Relations

India and the Gulf Cooperation Council (GCC) have signed a joint statement regarding a proposed Free Trade Agreement (FTA), marking a significant step forward in strengthening bilateral economic relations. Speaking on the occasion, Union Commerce and Industry Minister Piyush Goyal described the development as a major milestone in ties between India and GCC member nations. He stated that the agreement, built on shared history and cultural connections, is expected to further deepen cooperation between the two regions. Goyal also highlighted that the joint statement, along with the Terms of Reference (ToR) signed on February 5, 2026, lays the foundation for a strong and structured trade framework. He emphasized that such a framework would be mutually beneficial and enhance economic engagement at a global level. The GCC remains India’s largest trading partner bloc. During the financial year 2024–25, bilateral trade between India and GCC countries reached approximately $178.56 billion, accounting for around 15.42 percent of India’s total global trade. India’s major exports to GCC nations include rice, engineering goods, textiles, and jewellery. In return, India imports crude oil, liquefied natural gas (LNG), and petrochemical products from the Gulf region. Meanwhile, GCC Secretary General Jasem Albudaiwi noted that the agreement is expected to enhance business confidence and open new avenues for investment. It is also anticipated that the deal will lead to a significant increase in foreign direct investment (FDI) into India.