India Eu Trade DealImage Credit source: PTI
India is now moving forward rapidly in its trade relations. First, on January 27, India signed a Free Trade Agreement (FTA) with the European Union (EU). After this, now the trade deal with America has also been finalized. In this series, today i.e. on 5 February 2026, India is going to sign FTA with the Gulf Cooperation Council (GCC), which includes 6 Gulf countries.
According to the ET report, the Terms of Reference (ToR) i.e. the document determining the scope, rules and complete structure of the trade deal will be finalized today. It will be led by Commerce and Industry Minister Piyush Goyal. This step has been taken just three days after the announcement of the trade deal between India and America. Under this deal, America has reduced the tariff imposed on India from 50 percent to 18 percent.
India has already signed trade agreements with two GCC countries, UAE and Oman, while talks are on for FTA with Qatar. Apart from UAE and Oman, GCC also includes Saudi Arabia, Bahrain and Kuwait. The India-UAE Comprehensive Economic Partnership Agreement is effective from May 1, 2022. Whereas, India and Oman had signed CEPA in Muscat on 18 December 2025.
this discussion has been going on for a long time
FTA negotiations between India and the GCC began in 2004 with a framework agreement. After this, two rounds of talks took place in 2006 and 2008, but in 2011 the GCC stopped talks on the global label. Talks resumed after the visit of the GCC Secretary General to India in November 2022. In October 2023, the GCC shared revised terms of reference, after which both parties have been discussing an updated version.
gcc trade
Bilateral trade between India and GCC to reach $178.56 billion in fiscal year 2025. In this, India’s export was 56.87 billion dollars and import was 121.66 billion dollars. This is 15.42 percent of India’s total global trade. Saudi Arabia is India’s second largest GCC trading partner after UAE. India’s largest imports from GCC countries are crude oil and natural gas, while India exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel and chemicals.
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