Published: 23 February 2026PIB / DD News / Business TodayInternational
India and GCC Sign Joint Statement, Formally Launch Free Trade Agreement Negotiations
On February 24, 2026, India and the Gulf Cooperation Council (GCC) signed a Joint Statement formally launching negotiations for a comprehensive India-GCC Free Trade Agreement (FTA). The document was signed in New Delhi by Union Minister of Commerce and Industry Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi. This milestone followed the earlier signing of Terms of Reference (ToR) on February 5, 2026.
The GCC is India's largest trading partner bloc, with bilateral trade reaching USD 178.56 billion in FY 2024-25 (exports: $56.87 billion, imports: $121.68 billion), accounting for 15.42% of India's total global trade. The FTA negotiations will cover trade in goods, customs procedures, services, digital trade, cutting-edge technologies, and investment flows. The GCC represents a market of 61.5 million people with a combined GDP of USD 2.3 trillion.
For Rajasthan, the India-GCC FTA holds special significance. The state is a major exporter of gems and jewellery, marble and granite, textiles (including Jaipur block prints and Bandhani fabric), and handicrafts — all of which enjoy high demand in GCC markets. Additionally, Rajasthan has one of the largest Gulf diaspora populations in India, particularly in UAE, Saudi Arabia, and Qatar, whose remittances sustain rural household incomes across the state.
0Mains angle
Q: Examine the strategic significance of the India-GCC Joint Statement of February 2026 formally launching Free Trade Agreement negotiations for Rajasthan's export sectors.
Answer (50 words):
On 24 February 2026, India and GCC signed a Joint Statement launching FTA negotiations, covering goods, services, digital trade and investment. Bilateral trade reached USD 178.56 billion in FY 2024-25, 15.42% of India's global trade. GCC has 61.5 million people, USD 2.3 trillion GDP. Rajasthan's gems, textiles and Bandhani gain market access.
6-axis classification
CoverageInternationalSubjectInternationalExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourcePIB / DD News / Business Today
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
On which date did India and the Gulf Cooperation Council sign the Joint Statement formally launching negotiations for the India-GCC Free Trade Agreement?
Explanation · Correct answer AIndia and the Gulf Cooperation Council signed the Joint Statement on 24 February 2026 in New Delhi, formally launching negotiations for a comprehensive India-GCC Free Trade Agreement after the terms of reference had been finalized.
Frequently asked questions
What is the GCC and which countries does it include?
The Gulf Cooperation Council (GCC) is a regional intergovernmental political and economic union founded in 1981. It comprises six member states: Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman. The GCC is India's largest collective trading partner, with bilateral trade reaching USD 178.56 billion — 15.42% of India's total global trade.
What does the India–GCC Free Trade Agreement propose to cover?
The proposed FTA covers four broad areas: goods (reduction of tariffs on merchandise trade), services (market access for Indian IT, healthcare, and education sectors), digital trade (e-commerce, data flows, digital payments), and technology (including clean energy and fintech). The agreement also has implications for investment protection and intellectual property rights.
How is the India–GCC FTA significant for Rajasthan?
Rajasthan stands to benefit significantly because: (1) The gems and jewellery sector (Jaipur is a global hub) exports heavily to Gulf buyers; (2) Textile exports from Bhilwara and Jodhpur target GCC markets; (3) Over 1 million Rajasthanis work in GCC countries, and lower trade barriers could ease remittance flows and professional mobility; and (4) Tourism from the Gulf to Rajasthan's heritage sites could increase.
What is the significance of remittances from GCC for India?
Over 9 million Indians live in GCC countries, and Gulf remittances constitute the largest single source of India's total remittance inflows — the highest diaspora remittance flow in the world. These remittances support household consumption, reduce poverty, and contribute to India's foreign exchange reserves. An FTA could further ease financial flows and strengthen economic integration.
What is the difference between a Joint Statement and a Free Trade Agreement?
A Joint Statement is a political declaration of intent — it formalises the decision to begin negotiations but has no legally binding trade commitments. A Free Trade Agreement (FTA), once concluded and ratified, is a legally binding treaty that specifies tariff schedules, service access commitments, dispute resolution mechanisms, and rules of origin. The February 24, 2026 Joint Statement launched the formal negotiation process that will eventually culminate in the FTA.
