**Executive Summary**
The Joint Statement announces the formal launch of negotiations for a comprehensive and mutually beneficial Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC). Signed on February 24, 2026, in New Delhi, the FTA negotiations aim to strengthen trade and investment ties, building on existing strong economic and cultural connections. The Terms of Reference (ToR) for the FTA were signed on February 5, 2026.
**Key Points / Main Content**
* **FTA Launch:** Formal negotiations for the India-GCC FTA were launched on February 24, 2026, with the signing of a Joint Statement by Shri Piyush Goyal and His Excellency Jasem Mohamed Albudaiwi. The ToR for the FTA was signed on February 5, 2026.
* **FTA Objectives:**
* Strengthen trade and investment between India and GCC countries.
* Harness mutual synergies and complementarities.
* Infuse predictability and certainty for businesses.
* Unlock the full potential of trade between India and the GCC.
* Facilitate the expansion and diversification of exports.
* Strengthen economic integration.
* **India-GCC Trade Relationship:**
* The GCC is India's largest trading partner bloc.
* Bilateral trade reached USD 178.56 billion in FY 2024-25 (Exports: USD 56.87 billion; Imports: USD 121.68 billion).
* India's trade with the GCC accounts for 15.42% of India's global trade.
* India's trade with the GCC has grown at an average annual rate of 15.3 per cent in the last five years.
* GCC countries represent a market of 61.5 million people (2024).
* GCC countries represent USD 2.3 trillion in terms of GDP at current prices, ranking 9th globally.
* GCC is a significant source of FDI for India (cumulative investments exceeding USD 31.14 billion as on September 2025).
* **Key Exports and Imports:**
* Key exports from India to GCC: engineering goods, rice, textiles, machinery, gems, and jewelry.
* Key imports from GCC to India: crude oil, LNG, petrochemicals, and precious metals such as gold.
* **People-to-People Connections:** The GCC is home to nearly ten million members of the Indian community.
**Impact Analysis**
**Indian Businesses**
* **Impact:** Increased predictability and certainty in trade relations with GCC countries; access to a large and growing market.
* **Action Required:** Prepare for potential changes in trade regulations and opportunities for increased exports and investments.
**GCC Businesses**
* **Impact:** Strengthened trade relations with India, one of the world’s fastest-growing economies; opportunities for increased exports and investments.
* **Action Required:** Prepare for potential changes in trade regulations and opportunities for increased exports and investments.
**Indian Community in GCC**
* **Impact:** Potential for stronger economic and cultural ties between India and GCC countries, further reinforced by their presence.
* **Action Required:** No immediate action required, but should stay informed of any new developments stemming from the agreement.
**Indian Government**
* **Impact:** Successful completion of the FTA will strengthen economic and political ties with GCC countries, boosting trade and investment.
* **Action Required:** Complete the negotiation and signing of the FTA agreement.
Key Entities Referenced
India-GCC Free Trade Agreement (FTA): A comprehensive trade agreement between India and the Gulf Cooperation Council, aimed at strengthening economic ties and expanding trade.
Gulf Cooperation Council (GCC): A regional intergovernmental political and economic union consisting of all Arab states of the Persian Gulf except for Iraq.
Ministry of Commerce & Industry: The Indian ministry responsible for the development and regulation of international trade and commerce.
New Delhi: The location of the formal launch of negotiations for the India-GCC Free Trade Agreement.
Ministry of Commerce & Industry
India and Gulf Cooperation Council Sign Joint
Statement on the India–GCC Free Trade
Agreement
Posted On: 24 FEB 2026 7:11PM by PIB Delhi
The Joint Statement on the India-GCC Free Trade Agreement (FTA) was signed between Shri Piyush
Goyal, Union Minister of Commerce and Industry and His Excellency Jasem Mohamed Albudaiwi,
Secretary General of the Gulf Cooperation Council on 24th February 2026 in New Delhi formally
launching negotiations for a comprehensive and mutually beneficial agreement. The signing took place in
the presence of the distinguished delegations and representatives of both the parties.
During the signing, Shri Piyush Goyal emphasized that the Statement along with the Terms of Reference
(ToR) for FTA which were signed on 5thFebruary, 2026, mark a significant milestone in the relationship
between India and GCC countries. He underscored that the relationship which is deeply rooted in shared
history and cultural linkages, would get further impetus from a broad-based and mutually beneficial FTA.
Heunderlined that amidst global uncertainties, it is most opportune that discussions are starting on
negotiating a robust trading arrangement which would harness mutual synergies and complementarities.
His Excellency Jasem Mohamed Albudaiwi emphasized that FTA will serve as an important tool to further
strengthen trade and investment ties between India and GCC countries by infusing predictability and
certainty for businesses.
The FTA holds significant potential to unlock and expand trade with an important region, with which India
has longstanding historical ties in trade and commerce. GCC is India's largest trading partner bloc with
bilateral trade reachingUSD 178.56 billion (Exports: USD 56.87 billion; Imports: USD 121.68 billion) in
FY 2024-25, accounting for 15.42% of India’s global trade. In the last five years, India’s trade with the
GCC has expanded steadily, registering an annual average growth rate of 15.3 per cent.
Key exports from India to GCC include engineering goods, rice, textiles, machinery, gems and jewelry.
Key sectors of imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious
metals such as gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) and
US$ 2.3 trillion in terms of GDP at current prices, ranking 9th globally in this category. The GCC region is
also a significant source of FDI for India, with cumulative investments exceeding USD 31.14 billion as on
September 2025.
The GCC is also home to nearly ten million members of the Indian community acting as a living bridge
between both countries. These strong and enduring people-to-people connections form the foundation of
the relationship between India and GCC countries, which is further reinforced by the substantial presence
of Indian companies across the region.
The India–GCC FTA is expected to unlock the full potential of trade between India and the GCC upon
signing and would be a force multiplier for global good, while facilitating the expansion and
diversification of exports and strengthening economic integration between the two sides.****
Abhijiith Narayanan/Shabbir Azad/Anushka Pandey
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