India and the Gulf Cooperation Council (GCC) are set to begin fresh talks for a Free Trade Agreement (FTA) on Thursday, February 5, 2026, marking a significant step towards strengthening economic ties between the two regions. Commerce and Industry Minister Piyush Goyal will oversee the signing of the terms of reference with the GCC, which comprises Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain. The terms of reference outline the scope, framework, and procedures for the proposed trade deal.
This move signifies a renewed effort to boost bilateral trade and investment, after discussions were put on hold in 2008. The FTA aims to create new opportunities for both India and the GCC, building upon existing trade relationships and addressing trade imbalances.
The GCC is a crucial trading partner for India, with bilateral trade reaching $178.7 billion in 2024-25. India's exports to the GCC amounted to approximately $57 billion, while imports stood at $121.7 billion. A significant portion of India's imports from the GCC consists of crude oil and natural gas, primarily from Saudi Arabia and Qatar. In return, India exports pearls, precious stones, metals, imitation jewellery, electrical machinery, iron, steel, and chemicals. The GCC countries collectively contribute to over 15% of India's total trade.
India has already established free trade agreements with individual GCC members, including the UAE in May 2022 and a Comprehensive Economic Partnership Agreement (CEPA) with Oman in December 2025. These existing agreements demonstrate India's commitment to strengthening trade relations with the Gulf region.
The FTA talks with the GCC are expected to further enhance economic cooperation in various sectors, including energy, investment, and services. The agreement is also strategically important due to the large Indian expatriate community residing in the GCC countries, which constitutes a significant portion of India's non-resident Indians. Deeper economic ties are expected to increase the flow of goods, services, and investments between India and the GCC, benefiting both economies.
Analysts suggest that a successful FTA could help balance trade gaps, particularly with the UAE and Saudi Arabia, and unlock new avenues for trade diversification. It could also provide India with greater access to critical resources and markets in the Gulf region. The negotiations reflect India's broader strategy of pursuing trade agreements with key partners to boost its economic growth and global integration.
The India-GCC FTA is poised to be a significant milestone in the economic partnership between the two regions, fostering greater trade, investment, and collaboration in the years to come.