India and Gulf Cooperation Council Sign Terms of Reference for a Free Trade Agreement
- IBEF
- February 6, 2026
The Terms of Reference for the Free Trade Agreement between India and the Gulf Cooperation Council (GCC) were formally signed in a ceremony held in New Delhi on February 5, 2026. This is a significant step towards enhancing economic cooperation between India and the six-member Gulf Cooperation Council (GCC) countries, which include Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. The signing of the agreement, led by Union Commerce and Industry Minister Mr. Piyush Goyal, indicates that a large trade channel is to be opened to enhance trade and strategic partnerships with the resource-rich Gulf states. This comes at a time when the government announced that the first tranche of India’s ninth Free Trade Agreement (FTA) with the United States will be announced soon.
The statement noted that the current level of trade between India and the Gulf Cooperation Council (GCC) is US$ 170 billion. The statement also mentioned that there are 10 million Indian workers in the Gulf Cooperation Council (GCC) countries, which is a huge source of remittances and people-to-people ties. Additionally, the statement highlighted that FTA would assist in diversifying and increasing India’s energy sources, ensuring long-term supplies, and increasing trade. Sectors such as food processing, infrastructure, petrochemicals, and Information and Communication Technology (ICT) are expected to benefit largely from the reduction in tariffs and improved market access.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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