India has begun negotiations for a free trade agreement (FTA) with the Gulf Cooperation Council (GCC), comprising six member nations. This agreement comes as India looks to strengthen trade ties with advanced countries. The GCC is the largest trading bloc with which India trades. India has signed the terms of reference (TOR) that describe the scope, structure, and modalities of negotiations for the launched FTA.
India already has an economic agreement with the United Arab Emirates (UAE), and one with Oman has been finalised and will take effect next month. The Gulf Cooperation Council (GCC) includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, all of which are important trade and investment partners for India.
India’s exports to the GCC are nearly $57 billion, while imports from the GCC are around $122 billion. This trade amounts to over 15 per cent of India’s total global trade. Over the last five years, trade with the GCC has grown at an average annual rate of about 15 per cent.
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Commerce & Industry Minister Piyush Goyal said the agreement will build on the already strong bond and create new opportunities across sectors, including food processing infrastructure, petrochemicals, ICT, and services for India. Additionally, visa requirements for Indian professionals, along with investment considerations, may be key elements of discussions in the coming months.
