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India and GCC Sign Joint Statement to Start FTA Talks
ECONOMY & POLICY

India and GCC Sign Joint Statement to Start FTA Talks

Senior ministers of India and the Gulf Cooperation Council signed a joint statement launching negotiations on a comprehensive free trade agreement in New Delhi on 24 February 2026. The document was endorsed by the Union Minister of Commerce and Industry and the Secretary General of the Gulf Cooperation Council in the presence of delegations from both sides. The signing formally initiated talks intended to build a broad based and mutually beneficial trading arrangement.

Officials noted that the statement follows the earlier signing of the terms of reference on 5 February 2026 and represents a significant milestone in bilateral relations. They said the agreement seeks to harness historical linkages and complementarities and to provide predictability and certainty for businesses. The process was described as timely given global uncertainties and the need to bolster trade and investment ties.

Data supplied by officials indicates that the GCC is India’s largest trading partner bloc, with bilateral trade reaching US$ 178.56 billion (bn) in FY 2024-25, of which exports stood at US$ 56.87 billion and imports at US$ 121.68 billion, accounting for 15.42 per cent of India’s global trade. Trade with the bloc has expanded at an annual average growth rate of 15.3 per cent over the last five years. The GCC region is also a major source of foreign direct investment into India, with cumulative investments exceeding US$ 31.14 bn as of September 2025.

Key Indian exports to the GCC include engineering goods, rice, textiles, machinery and gems and jewellery while imports are dominated by crude oil, LNG, petrochemicals and precious metals such as gold. Collectively the GCC represents a market of 61.5 million (mn) people and an economy of US$ 2.3 trillion (tn) at current prices, ranking ninth globally. The region hosts around 10 mn members of the Indian community and a significant presence of Indian companies, factors that are expected to reinforce the impact of a successful free trade agreement.

Senior ministers of India and the Gulf Cooperation Council signed a joint statement launching negotiations on a comprehensive free trade agreement in New Delhi on 24 February 2026. The document was endorsed by the Union Minister of Commerce and Industry and the Secretary General of the Gulf Cooperation Council in the presence of delegations from both sides. The signing formally initiated talks intended to build a broad based and mutually beneficial trading arrangement. Officials noted that the statement follows the earlier signing of the terms of reference on 5 February 2026 and represents a significant milestone in bilateral relations. They said the agreement seeks to harness historical linkages and complementarities and to provide predictability and certainty for businesses. The process was described as timely given global uncertainties and the need to bolster trade and investment ties. Data supplied by officials indicates that the GCC is India’s largest trading partner bloc, with bilateral trade reaching US$ 178.56 billion (bn) in FY 2024-25, of which exports stood at US$ 56.87 billion and imports at US$ 121.68 billion, accounting for 15.42 per cent of India’s global trade. Trade with the bloc has expanded at an annual average growth rate of 15.3 per cent over the last five years. The GCC region is also a major source of foreign direct investment into India, with cumulative investments exceeding US$ 31.14 bn as of September 2025. Key Indian exports to the GCC include engineering goods, rice, textiles, machinery and gems and jewellery while imports are dominated by crude oil, LNG, petrochemicals and precious metals such as gold. Collectively the GCC represents a market of 61.5 million (mn) people and an economy of US$ 2.3 trillion (tn) at current prices, ranking ninth globally. The region hosts around 10 mn members of the Indian community and a significant presence of Indian companies, factors that are expected to reinforce the impact of a successful free trade agreement.

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