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India-GCC Trade Pact: Talks Begin for Historic FTA
5 Feb
Summary
- India and GCC countries launched FTA negotiations by signing terms of reference.
- First round of talks to be hosted by Saudi Arabia in Riyadh soon.
- Bilateral trade between India and GCC stood at approximately $179 billion in 2024-25.
India and the Gulf Cooperation Council (GCC) have formally initiated negotiations for a free trade agreement (FTA), signing the terms of reference to strengthen economic cooperation. This move marks a crucial step in deepening bilateral ties amidst global economic uncertainties. The first round of discussions is anticipated to convene in Riyadh, hosted by Saudi Arabia, in the upcoming months.
The FTA negotiations come as India actively pursues trade diplomacy, having recently concluded agreements with the UK, Oman, and the European Union. This proposed pact with the GCC, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, is expected to yield substantial benefits across various sectors like food processing, infrastructure, and petrochemicals.
Trade figures show a robust economic relationship, with India-GCC trade reaching approximately $179 billion in 2024-25. The UAE and Saudi Arabia remain key partners within the bloc. The agreement aims to enhance market access for Indian exports and attract Gulf investments into India's infrastructure and technology sectors, further bolstering economic integration and supply chain resilience.
