GCC and India sign terms for start of free trade talks

The Gulf Cooperation Council (GCC) and India signed terms of reference on Thursday to resume talks aimed at finalising a free trade agreement.

“Together with trade deals with the UAE and Oman, this FTA with the GCC will unleash new opportunities for Indian goods and services, MSMEs, entrepreneurs, skilled youth and professionals and attract massive investments,” Indian commerce and industry minister Piyush Goyal said in a post on social messaging platform X.

He said the stage is set for “unlocking the full potential of a mutually beneficial economic relationship with the GCC”.

Media reported in December that talks were underway to concur on the terms of reference, which set the framework and scope for negotiations on the proposed comprehensive economic partnership agreement (Cepa).

India’s exports to the GCC grew by 1 percent to $57 billion in 2024-25, while imports from the bloc rose 15 percent to $122 billion, the report said.

Oman and India signed a long-delayed Cepa in December that aims to boost trade between the two nations.

The UAE and India signed a Cepa in 2022 when bilateral trade stood at around $60 billion. In January, the two countries agreed on a new target to raise bilateral trade to $200 billion by 2032.

Out of 32 million non-resident Indians, nearly half are estimated to be working in Gulf countries, the report said. 

The UAE is home to more than 4.3 million Indian expats, accounting for around a third of the Gulf state’s population, according to India’s embassy in Abu Dhabi.

Further reading:

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