India and the Gulf Cooperation Council (GCC), a six-nation bloc, are set to officially begin Free Trade Agreement (FTA) talks on February 5, 2026. This move signifies a renewed effort to strengthen economic ties between India and the Gulf region, after a pause in negotiations that dates back to 2008.
The FTA discussions will encompass the GCC member states: Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain. India's Commerce and Industry Minister Piyush Goyal will be leading the Indian delegation. Goyal will also oversee the signing of the terms of reference, which detail the scope and framework for the proposed trade agreement.
The GCC is a significant trading partner for India, with a total trade volume of $178.7 billion recorded in 2024-25. A large portion of this trade involves India's import of oil and natural gas from the Gulf nations. Moreover, the Gulf countries host a substantial Indian diaspora, with nearly half of India's 32 million non-resident Indians residing and working in the region. These expatriates contribute significantly to the Indian economy through remittances.
India has already established trade links with some GCC members, having signed a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which came into effect on May 1, 2022. A similar agreement was signed with Oman on December 18, 2025. India is also reportedly in negotiations with Qatar for a separate FTA. The new FTA talks with the entire GCC bloc are expected to further enhance the flow of goods, including precious metals and machinery, between the regions.
An FTA between India and the GCC could help balance trade gaps, especially with major players like the UAE and Saudi Arabia. It is also expected to create new opportunities for both sides, expanding beyond the existing trade in oil and gas.
Jasem Al Budaiwi, Secretary General of the GCC, stated that the GCC has concluded or advanced several FTAs with other partners without the inclusion of non-trade issues. He also expressed concern when similar clauses were introduced in EU discussions, saying that introducing other issues does not encourage them to move forward.
These discussions take place against a backdrop of evolving global trade dynamics and heightened geopolitical risks. Disruptions to traditional global trade rules and recent tariff policies have accelerated the push for new trade agreements.