Negotiations Target Wider Market Access Across Six Gulf Economies
India and the six-member Gulf Cooperation Council are set to begin formal negotiations for a Free Trade Agreement on October 5, marking a significant step towards strengthening economic ties between India and the Gulf region.
The GCC includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain. Together, these economies represent one of India’s most important trading blocs and a major source of energy imports.
India and the GCC signed the Terms of Reference for the proposed trade negotiations on February 5, formally establishing the framework for discussions.
The proposed agreement is expected to cover a broad range of economic areas, including trade in goods, services, investment and other forms of economic cooperation.
Bilateral merchandise trade between India and the GCC reached approximately $179 billion in 2025-26, highlighting the scale of the commercial relationship between the two sides.
India exported goods worth around $57 billion to GCC countries during the period, while imports stood at approximately $122 billion.
The GCC accounted for about 15.4% of India’s total trade in 2025-26, making the bloc an important part of India’s international trade network.
Energy remains a major component of the relationship. GCC countries are among India’s key suppliers of crude oil and natural gas, while the region also represents an important market for Indian products and services.
A comprehensive trade agreement could create additional opportunities for Indian industries including food processing, textiles, gems and jewellery, leather and plastics, among other sectors.
India is also seeking greater access for its services sector in areas such as information technology, healthcare, education and professional services.
The negotiations come as India continues to expand its network of trade agreements and deepen economic engagement with major global markets. A broader India-GCC agreement could further integrate trade, investment and services flows between India and the Gulf economies.
