New Delhi: In a significant development, India is all set to start talks with the Gulf Cooperation Council (GCC) – which is comprised of nations such as Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.
India and the six-nation bloc of Middle Eastern nations signed a pact – terms of reference on Thursday for starting talks for a Free Trade Agreement (FTA). With the signing of the ToR, the road has been cleared for the resumption of talks on this trade agreement, which had been pending since 2004. The terms of reference outline the scope and modalities of a proposed trade pact.
Commerce and Industry Minister Piyush Goyal presided over the signing ceremony of the ToRs with the union of six countries in the Gulf region. Goyal termed it as a momentous day. “The India-Gulf Cooperation Council (GCC) FTA will become a force multiplier for global good.” he said.
The Union minister said that the agreement will help boost bilateral trade between India and the six nations. He added that about 10 million Indians are living and working in the GCC region.
In May 2022, India implemented a free trade pact with the UAE. India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025.
In 2006 and 2008, India and the GCC held two rounds of trade negotiations, so this would be restarting of the FTA talks.
India-GCC trade
India majorly imports crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar. The country exports metals, imitation jewellery, pearls, precious and semi-precious stones, electrical machinery, iron and steel, and chemicals to these nations.
In 2024-25, India’s exports to the GCC increased by about one per cent to about USD 57 billion, while it stood at USD 56.32 billion in 2023-24. India imports goods worth USD 121.7 billion in 2024-25 as compared to USD 105.5 billion in 2023-24. Bilateral trade between India and the bloc surged to USD 178.7 billion in 2024-25 from USD 161.82 billion in 2023-24.
India-UAE trade
The UAE emerged as the India’s third-largest trading partner in the last fiscal. India’s exports to the Middle East nation was recorded at USD 36.63 billion, while imports were USD 63.40 billion in the last fiscal, resulting in a trade deficit of USD 26.76 billion in 2024-25.
India-Saudi Arabia trade
In 2024-25, Saudi Arabia was India’s fifth-largest trading partner as exports to the kingdom stood at USD 11.75 billion, while imports was recorded at USD 30.12 billion, leading to a trade deficit of USD 18.36 billion in 2024-25.
India-Qatar trade
India’s exports to Qatar was recorded at USD 1.68 billion as compared to imports worth USD 12.46 billion. Thus, a trade deficit of USD 10.78 billion in 2024-25. India mainly imports liquefied natural gas (LNG) from Qatar. The Middle eastern country imports chemicals, plastics, cereals, meat and fish.
India’s trade with Oman, Kuwait
In 2024-25, India’s exports to Oman stood at USD 4 billion, while imports aggregated to USD 6.54 billion. Exports to Kuwait were worth USD 1.93 billion in 2024-25, while imports were USD 8.28 billion.
Similarly, India’s outbound shipments to Bahrain was USD 797.47 million in FY25, imports were USD 843.44 million.
India has been acting fast to finalise trade deals and Free Trade Agreement (FTA) with several countries in an attempt to capture more markets for its products.