In a significant stride towards economic integration, India and the Gulf Cooperation Council formalized the Terms of Reference for a Free Trade Agreement on Thursday. The Ministry of Commerce and Industry confirmed the development, which defines the scope and modalities of the anticipated FTA.
The high-profile signing took place in New Delhi’s Udyog Bhawan, where Ajay Bhambu, Additional Commerce Secretary and India’s Chief Negotiator, and Dr. Raja Al Marzouki from GCC Secretariat put pen to paper. Key dignitaries present included Commerce Minister Piyush Goyal, MoS Jitin Prasad, and Commerce Secretary Rajesh Agrawal.
Piyush Goyal described the FTA as vital for global interests, promising enhanced stability and deeper ties. He highlighted benefits like unrestricted trade in goods and services, boosted investments, job creation, and fortified energy and food security.
GCC’s Dr. Al Marzouki pointed to longstanding trade histories and viewed the ToR as the launchpad for beneficial negotiations. He stressed its importance in navigating current global volatilities.
Bilateral trade hit $178.56 billion in FY24-25, with India’s exports at $56.87 billion and imports at $121.68 billion—making GCC 15.42% of India’s total trade. A robust 15.3% average annual growth over five years signals immense scope for the FTA to propel commerce in key areas such as oil, gems, jewelry, and IT services.
As negotiations progress, this pact could redefine India’s engagement with the Middle East, fostering resilience against global economic headwinds.