India and the Gulf Cooperation Council have formally initiated free trade agreement negotiations by signing the Terms of Reference, aiming to deepen economic engagement amid global uncertainty.

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• India and the six-nation Gulf Cooperation Council have signed the Terms of Reference, formally launching negotiations for a comprehensive free trade agreement.

• The Terms of Reference define the scope, structure and modalities of negotiations, enabling structured discussions on tariffs, market access and regulatory cooperation.

• The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, forming India’s largest regional trading bloc.

• The GCC accounts for over 15% of India’s total global trade, making it one of India’s most strategically important economic partners.

• India’s exports to the GCC are valued at nearly 57 billion dollars, while imports, largely crude oil and gas, are around 122 billion dollars.

• Commerce Minister Piyush Goyal stated that the agreement will build on strong existing ties and open new opportunities for Indian businesses.

• Priority sectors include food processing, infrastructure, petrochemicals, ICT services, investment cooperation and labour mobility, including visas for Indian professionals.