India, GCC sign Joint Statement to kick off detailed FTA talks, as trade hits $178.56 bn in FY25

India and the Gulf Cooperation Council (GCC) on Tuesday set the stage for a comprehensive Free Trade Agreement (FTA), formally initiating negotiations with the signing of a Joint Statement in New Delhi.

The document was signed by Union Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi, with senior officials and delegations from both sides present at the ceremony.

Addressing the gathering, Goyal said the Joint Statement, together with the Terms of Reference for the FTA signed earlier this month, signals a decisive advance in India’s economic engagement with the GCC. He noted that the proposed agreement would build on long-standing historical, cultural and commercial linkages between India and the Gulf region.

Goyal said that in an environment of global economic uncertainty, the decision to move forward with negotiations for a strong and mutually beneficial trade pact was timely. He added that the agreement would enable both sides to leverage the complementarities in their respective economies.

GCC Secretary General Jasem Mohamed Albudaiwi said the FTA would help deepen trade and investment flows by offering greater predictability and certainty to businesses across the two regions.

Trade expansion between India and the GCC

The Ministry of Commerce and Industry said the proposed pact carries significant potential to expand trade between India and the GCC. The bloc is currently India’s largest trading partner grouping, with bilateral trade touching USD 178.56 billion in FY 2024–25. India exported goods worth USD 56.87 billion to the GCC during the period, while imports stood at USD 121.68 billion. The region accounts for more than 15 per cent of India’s overall global trade.

Over the past five years, trade between India and GCC countries has grown at an average annual rate of 15.3 per cent.

India’s principal exports to the region include engineering goods, rice, textiles, machinery, and gems and jewellery. Imports are led by crude oil, LNG, petrochemicals, and precious metals such as gold.

The GCC, with a combined GDP of approximately USD 2.3 trillion and a population of about 61.5 million, ranks among the top ten global economic groupings. It is also a key source of foreign direct investment for India, with cumulative inflows exceeding USD 31.14 billion as of September 2025.

Nearly ten million Indians live and work in GCC countries, reinforcing people-to-people ties and strengthening economic linkages. Indian companies also maintain a strong footprint across member states of the bloc.