During the signing, Piyush Goyal said that the Statement along with the Terms of Reference (ToR) for FTA which were signed on 5 February, mark a significant milestone in the relationship between India and GCC countries.
Amidst global uncertainties, it is most opportune that discussions are starting on negotiating a robust trading arrangement which would harness mutual synergies and complementarities, he said.
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 reaching USD 178.56 billion (Exports: USD 56.87 billion; Imports: USD 121.68 billion) in FY 2024-25, accounting for 15.42 per cent 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.
