India, GCC Sign ToR to Start Free Trade Talks Soon

India and the six-nation Gulf Cooperation Council (GCC) have agreed on the terms to begin negotiations for a Free Trade Agreement (FTA), Union Minister Piyush Goyal announced on Thursday.

The development was confirmed after India and the GCC signed the Terms of Reference (ToR), which will serve as the official framework to start formal trade discussions.

The GCC includes UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman.

Trade and investment boost expected

Piyush Goyal said the proposed agreement would create a more robust trading arrangement between India and Gulf nations. He added that the deal is expected to support a smoother flow of goods and services, while also encouraging stronger investment opportunities between both sides.

Energy diversification a key focus

According to reports, Goyal also stated that the trade pact could help India diversify its energy sources. This statement comes at a time when global attention has increased after the recently signed India-US trade deal, where former US President Donald Trump claimed India would reduce its energy dependence on Russia. However, there has been no official confirmation from Indian authorities regarding this claim.

Talks resume after long gap

This move marks the resumption of trade negotiations that had earlier taken place between India and the GCC in 2006 and 2008, but were not completed.

India’s trade ties with Gulf already strong

India already has strong trade relations with major Gulf nations such as Saudi Arabia and Qatar, from where India imports crude oil and natural gas. India exports several products to Gulf countries including:

• Pearls and precious/semi-precious stones

• Metals and imitation jewellery

• Electrical machinery

• Iron and steel

• Chemicals

India already has trade pacts with UAE and Oman

India has already implemented a free trade agreement with the UAE in May 2022.

India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025.

Strategic importance of the GCC deal

The India-GCC trade initiative is seen as significant due to the Gulf region’s strategic and economic importance. It also comes amid regional developments, including Saudi Arabia’s defence agreement with Pakistan signed in September 2025, which stated that aggression against either country would be treated as aggression against both.

Despite these dynamics, the new step between India and the GCC is expected to strengthen India’s economic engagement with Gulf nations, including Saudi Arabia.