India, Gulf Cooperation Council sign terms of reference for trade deal

The agreement is expected to enhance market access in the food processing and petrochemical sectors, Commerce Minister Piyush Goyal said

India and the Gulf Cooperation Council (GCC) on February 5 signed the Terms of Reference (ToR) to launch negotiations for a proposed Free Trade Agreement (FTA), which is expected to support the South Asian nation's efforts to diversify its energy needs once implemented.

The ToR sets out the framework, scope and guiding principles for the negotiations, paving the way for formal talks on a trade agreement.

The six-member GCC bloc comprises Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain.

"India and the GCC have been trading for over 5000 years. So it is most appropriate that we enter into a stronger and robust agreement, which will enable greater flow of goods, services, bring predictability to policies, and encourage more investments," Commerce Minister Piyush Goyal said.

The agreement is expected to enhance market access in the food processing and petrochemical sectors, the minister added.

The trade pact with the GCC has been under discussion for nearly two decades, with earlier rounds of negotiations in 2006 and 2008 stalling under a previous government.

India already has a Comprehensive Economic Partnership Agreement (CEPA) with the UAE that came into effect in May 2022, and signed a trade pact with Oman on December 18, 2025.

To be sure, India has been in talks to seek bilateral trade pacts with Qatar and Bahrain as well.

Bilateral trade between India and the GCC has grown significantly over the years, reaching 179 billion currently, with the UAE and Saudi Arabia among New Delhi's largest partners in the region.

India exports a wide range of goods to the Gulf, including food products, textiles, jewellery, pharmaceuticals, and engineering items, while energy imports such as crude oil, LNG, and LPG form a significant part of the trade