Indian Economy News

India and Gulf Cooperation Council Sign Joint Statement on the India–GCC Free Trade Agreement

India and the Gulf Cooperation Council (GCC) moved a step ahead by signing a Joint Statement to initiate negotiations for the proposed India-GCC Free Trade Agreement (FTA). This is a significant step towards enhancing the economic relationship between the two regions. In New Delhi, Union Minister of Commerce and Industry Mr. Piyush Goyal and GCC Secretary General of the Gulf Cooperation Council Mr. Jasem Mohamed Albudaiwi signed the Joint Statement. Based on the Terms of Reference signed earlier, the move aims to create a wide and mutually beneficial framework that will help enhance trade and investment cooperation. The negotiations are expected to bring more predictability to the business community and help enhance the long-standing economic and cultural ties between India and the GCC countries.
The GCC remains India's largest trading partner bloc, with trade amounting to Rs. 15.56 trillion (US$ 178.56 billion) in FY25, accounting for 15.42% of India's total international trade, with an average annual growth rate of 15.3% over the last five years. The main Indian exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery. The main imports are crude oil, LNG, petrochemicals, and precious metals. The GCC, with a GDP of Rs.192.47 lakh crore (US$ 2.3 trillion) and a population of 61.5 million, is also a strong investment destination, having attracted cumulative FDI into India of over Rs. 2.71 trillion (US$ 31.14 billion). The proposed FTA is expected to increase trade diversification, enhance economic integration, and provide new opportunities for businesses in different sectors.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.