India Begins GCC FTA Process as Goyal Attends Signing of Terms of Reference

Commerce and Industry Minister Piyush Goyal on Thursday attended the signing ceremony of the Terms of Reference (ToR) for a proposed Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC), formally launching negotiations.

Calling it a “truly momentous day”, Goyal said the agreement would pave the way for a more robust trading arrangement, enabling greater free flow of goods, services, and investments.

The GCC bloc, Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain, is among India’s largest trading partners, with bilateral trade exceeding $180 billion annually.

Energy dominates the relationship, with the region accounting for a significant share of India’s crude oil and LNG imports. At the same time, non-oil trade has been expanding steadily, covering engineering goods, food products, textiles, gems, and jewellery.

The GCC also hosts over 9 million Indians, making it one of the strongest corridors for remittances and people-to-people ties.

FTAs As A Strategic Economic Rule

Goyal said India currently has nine operational FTAs covering 38 countries, many of them developed economies. These agreements, he said, are critical to modernising India’s economy, improving competitiveness, and integrating Indian firms into global value chains.

India’s recent FTA approach has focused on calibrated liberalisation, sector-specific safeguards, and phased implementation rather than blanket tariff cuts.

Opportunities for farmers, fishermen, and MSMEs

According to the commerce ministry, an India-GCC FTA could open new export opportunities for:

• Agricultural and processed food products
• Marine and fisheries exports
• MSME-driven manufacturing and services
• Logistics, construction, and professional services

The ToR will determine the scope, timelines, and structure of negotiations, including tariff schedules, rules of origin, and services trade.

Also read: https://www.republicworld.com/business/india-eyes-local-helicopter-manufacturing-as-adani-defence-leonardo-ink-mou