Published: 24 February 2026PIB / Business StandardInternational
India and GCC Sign Joint Statement Formally Launching Free Trade Agreement Negotiations
On February 24, 2026, Union Minister of Commerce and Industry Piyush Goyal and Gulf Cooperation Council (GCC) Secretary General Jasem Mohamed Albudaiwi signed a Joint Statement in New Delhi, formally launching negotiations for the India-GCC Free Trade Agreement (FTA). This milestone builds on the Terms of Reference (ToR) for the FTA that were signed on February 5, 2026, at Vanijya Bhawan, New Delhi.
The GCC — comprising Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman — is India's largest trading partner bloc. Bilateral trade stood at USD 178.56 billion in FY 2024–25 (Exports: USD 56.87 billion; Imports: USD 121.68 billion), accounting for 15.42% of India's global trade, with an annual average growth rate of 15.3% over the last five years. Key Indian exports include engineering goods, rice, textiles, gems and jewellery; key imports are crude oil, LNG, petrochemicals, and precious metals.
The FTA is expected to reduce tariff and non-tariff barriers, expand market access for Indian services and professionals, and deepen investment flows. For Rajasthan, with its large Gulf diaspora of workers particularly in UAE, Qatar, and Saudi Arabia, the FTA is significant for protecting worker rights, easing remittance flows, and expanding exports of handicrafts, gems, marble, and textiles from the state.
0Mains angle
Q: Examine the strategic significance of the formal launch of India-GCC Free Trade Agreement negotiations on 24-25 February 2026.
Answer (50 words):
On 24 February 2026, Commerce Minister Goyal and GCC Secretary General Albudaiwi launched India-GCC FTA negotiations in New Delhi. GCC, India's largest trading bloc, recorded $178.56 billion bilateral trade in FY25 — about 15.42% of India's global trade, growing 15.3% annually. The FTA will ease tariffs and benefit Rajasthan's Gulf diaspora.
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Linked questionMedium
On which date did India and the Gulf Cooperation Council sign the Joint Statement formally launching India-GCC FTA negotiations?
Explanation · Correct answer APIB states that the Joint Statement on the India-GCC Free Trade Agreement was signed in New Delhi on 24 February 2026 by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi. This formally launched negotiations for a comprehensive India-GCC FTA.
Frequently asked questions
When did India and GCC formally launch Free Trade Agreement negotiations?
India and GCC signed a Joint Statement on February 24, 2026, formally launching FTA negotiations. This followed the signing of the Terms of Reference (ToR) on February 5, 2026.
Which countries are members of the GCC?
The Gulf Cooperation Council (GCC) comprises six countries: Saudi Arabia, UAE, Kuwait, Bahrain, Qatar, and Oman. Together, they form India's largest trading bloc.
What is the trade significance of GCC for India?
GCC is India's largest trading bloc with bilateral trade worth USD 178.56 billion, representing 15.42% of India's total global trade and growing at 15.3% annually. GCC also supplies over 60% of India's crude oil, making it strategically vital for India's energy security.
Which Indian sectors are expected to benefit from the India-GCC FTA?
The India-GCC FTA is expected to benefit Indian sectors including IT services, pharmaceuticals, textiles, gems and jewellery, and skilled labour mobility. Reduced tariffs and streamlined regulations under the FTA would open GCC markets for these Indian industries.
What are the Terms of Reference (ToR) in the context of the India-GCC FTA?
The Terms of Reference (ToR) signed on February 5, 2026, established the framework and scope for the India-GCC FTA negotiations, defining the structure, coverage, and process for the trade deal. The formal launch of negotiations followed with the Joint Statement on February 24–25, 2026.
