New Delhi, February 6: India and the Gulf Cooperation Council (GCC) have signed the Terms of Reference (ToR) for a Free Trade Agreement (FTA) on Thursday. This announcement was made by the Ministry of commerce and industry.
The ministry stated that the ToR will guide the GCC-India FTA, defining its scope and procedures. The signing took place at the Commerce Building in the national capital, with Additional Secretary and Chief Negotiator Ajay Bhadu and Dr. Raja Al Marzouqi, the chief negotiator from the GCC Secretariat, in attendance.
Present at the signing ceremony were Union Minister of Commerce and Industry Piyush Goyal, Minister of State for Commerce and Industry Jitin Prasada, and Commerce Secretary Rajesh Agarwal.
During the event, Piyush Goyal remarked that the FTA between India and the GCC will be significant for global interests. He emphasized that this agreement will bring certainty and stability, strengthening ties between both parties.
Goyal expressed confidence that the FTA will facilitate the seamless flow of goods and services and attract investments. Additionally, he noted that the agreement would create job opportunities and enhance food and energy security in the region, thereby deepening economic relations between the two sides.
Dr. Al Marzouqi, Secretary-General and Chief Negotiator of the GCC, highlighted the historical trade relations between the GCC and India. He stated that the signing of the ToR symbolizes the commencement of negotiations for a mutually beneficial FTA. He added that the FTA would strengthen ties between India and the GCC, especially amid current global uncertainties.
The India-GCC Free Trade Agreement offers immense potential to enhance and expand trade with a region that has long-standing historical ties in India’s commerce. In the fiscal year 2024-25, trade between India and the GCC reached $178.56 billion, accounting for 15.42% of India’s global trade. This included exports from India worth $56.87 billion and imports totaling $121.68 billion. Over the past five years, trade between India and the GCC has consistently grown, with an annual average growth rate of 15.3%.
