**Executive Summary**
The Terms of Reference (ToR) for the India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) were signed on February 5, 2026, in New Delhi. The ToRs define the scope and modalities for negotiations of the FTA, which aims to enhance trade relations, promote investment, and foster economic ties between India and the GCC. The signing took place in the presence of Union ministers and dignitaries from both sides.
**Key Points / Main Content**
* **FTA Framework:**
* The ToRs will guide the negotiations for the GCC-India FTA.
* The FTA intends to enable the seamless flow of goods and services.
* The FTA aims to attract investments and expand job opportunities.
* The FTA intends to foster food and energy security for the region.
* **Signatories and Attendees:**
* The ToR was signed by Shri Ajay Bhadoo, Additional Secretary, Department of Commerce, and Dr. Raja Al Marzouqi, Chief Negotiator, Secretariat General of the Gulf Cooperation Council.
* The signing took place in the presence of Union Minister Shri Piyush Goyal, Union Minister of State Shri Jitin Prasada, and Commerce Secretary Shri Rajesh Agrawal.
* **India-GCC Trade Relations:**
* India's trade with GCC stood at USD 178.56 billion in FY 2024-25, accounting for 15.42% of India's global trade.
* India's exports to GCC include engineering goods, rice, textiles, machinery, gems, and jewelry.
* Imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold.
* The GCC countries represent a market of 61.5 million people (2024) and US$ 2.3 trillion in GDP.
* The GCC region is a significant source of FDI for India, with cumulative investments exceeding USD 31.14 billion as of September 2025.
**Impact Analysis**
**India**
* **Impact:** Increased trade, investment, and economic growth; enhanced job opportunities; strengthened energy security.
* **Action Required:** Engage in FTA negotiations based on the agreed ToRs.
**Gulf Cooperation Council (GCC)**
* **Impact:** Enhanced trade relations with India, increased investment opportunities, and strengthened economic cooperation.
* **Action Required:** Engage in FTA negotiations based on the agreed ToRs.
**Indian Companies**
* **Impact:** Potential for increased exports to the GCC region.
* **Action Required:** Prepare to take advantage of potential tariff reductions and trade facilitation measures under the FTA.
**Indian Diaspora in the GCC**
* **Impact:** Enhanced economic ties that can positively affect their community and strengthen people-to-people relationships.
* **Action Required:** None mentioned.
Key Entities Referenced
India-GCC Free Trade Agreement (FTA): A trade agreement between India and the Gulf Cooperation Council aimed at expanding trade and economic cooperation.
Gulf Cooperation Council (GCC): A regional intergovernmental political and economic union consisting of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Ministry of Commerce & Industry: Indian government ministry responsible for international trade and commerce.
Terms of Reference (ToR): The document outlining the scope and modalities for negotiations of the India-GCC Free Trade Agreement.
New Delhi: Location where the Terms of Reference for the India-GCC Free Trade Agreement were signed.
Ministry of Commerce & Industry
India and Gulf Cooperation Council Sign Terms
of Reference for India–GCC Free Trade
Agreement
Posted On: 05 FEB 2026 5:07PM by PIB Delhi
The Terms of Reference (ToR) for the India-GCC Free Trade Agreement (FTA) were signed between Shri
Ajay Bhadoo, Additional Secretary and Chief Negotiator, Department of Commerce and Dr. Raja Al
Marzouqi, Chief Negotiator, Secretariat General of the Gulf Cooperation Council, on 5 February 2026 at
Vanijya Bhawan, New Delhi. The signing took place in the presence of Union Minister of Commerce and
Industry Shri Piyush Goyal, Union Minister of State for Commerce and Industry Shri Jitin Prasada, and
Commerce Secretary Shri Rajesh Agrawal.
The ToRs will guide the negotiations for the GCC-India FTA by defining its scope and modalities.
During the signing ceremony, Shri Piyush Goyal emphasized that the FTA will be a force multiplier for the
global good. He underlined that the FTA will bring predictability and stability, taking the relationship
between the two sides to greater heights. He exuded confidence that FTA will enable seamless flow of
goods, and services and attract investments while expanding job opportunities and fostering food and
energy security for the region, elevating our deep economic ties.
Chief Negotiator, Secretariat General of the Gulf Cooperation Council, Dr. Al Marzouqi, underscored that
GCC and India have shared historic trade relations and that the signing of ToRs marks the commencement
of negotiations towards a mutually beneficial FTA. He highlighted that the FTA will further reinforce
relations between India and GCC, particularly in the context of prevailing global uncertainties.
During his visit, Dr. Raja Al Marzouqi met with Shri Rajesh Agrawal. The discussion focused on
bolstering overall economic partnership between India and the GCC and advancing cooperation in the
areas of mutual interest.
The India–GCC FTA holds significant potential to unlock and expand trade with an important region, with
which India has longstanding historical ties in trade and commerce. India’s trade with GCC stood at USD
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. These strong and enduring
people-to-people ties are further reinforced by the substantial presence of Indian companies across the
region.
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Abhishek Dayal/ Abhijith Narayanan/ Ishita Biswas
(Release ID: 2223875) Visitor Counter : 955
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