♦ India and the Gulf Cooperation Council (GCC) signed the Terms of Reference (ToR) for negotiations on a proposed Free Trade Agreement (FTA) on 5 February 2026, marking a significant step towards deepening economic ties between the two sides. The ToR will guide the scope, structure, and modalities of the India-GCC FTA negotiations, formally initiating discussions aimed at a comprehensive trade pact.

♦ Union Commerce and Industry Minister Piyush Goyal said the proposed FTA would act as a “force multiplier for the global good,” bringing greater predictability and stability to trade relations between India and the GCC. 

♦ India’s trade with the GCC stood at USD 178.56 billion in FY 2024-25, accounting for 15.42 percent of India’s total global trade. Over the past five years, bilateral trade has grown at an average annual rate of 15.3 percent.

♦ India’s key exports to the GCC include engineering goods, rice, textiles, machinery, and gems and jewellery, while imports primarily comprise crude oil, liquefied natural gas (LNG), petrochemicals, and precious metals such as gold.

♦ The GCC, comprising six countries, represents a combined market of about 61.5 million people and a GDP of USD 2.3 trillion, ranking ninth globally. The region is also a major source of foreign direct investment for India, with cumulative investments exceeding USD 31.14 billion as of September 2025. Nearly ten million members of the Indian diaspora live in GCC countries, further strengthening people-to-people ties alongside the strong presence of Indian businesses across the region.