Story perspectives

India and GCC Sign FTA to Boost Economic Ties

2/5/2026

Summary

Story summary

The Republic of India and the Gulf Cooperation Council (GCC) signed the Terms of Reference for an FTA on February 5, 2026.
The ToR outlines the negotiation framework to strengthen economic ties and support energy security.
Commerce Minister Piyush Goyal said the FTA could boost investments and create jobs.
In FY25, bilateral trade reached $178.56 billion, with India's imports from the GCC mainly crude oil and natural gas.

History

Historical Context

India's economic liberalization began in 1991, transitioning from a closed economy to an open market. This shift significantly boosted trade, with bilateral trade reaching $178.56 billion in FY25, primarily due to crude oil and natural gas imports from the Gulf Cooperation Council. The recent signing of a Free Trade Agreement aims to strengthen these economic ties and enhance energy security, potentially fostering investment and job creation in India.

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Story summary

The Republic of India and the Gulf Cooperation Council (GCC) signed the Terms of Reference for an FTA on February 5, 2026.
The ToR outlines the negotiation framework to strengthen economic ties and support energy security.
Commerce Minister Piyush Goyal said the FTA could boost investments and create jobs.
In FY25, bilateral trade reached $178.56 billion, with India's imports from the GCC mainly crude oil and natural gas.

1 / 2