Business
India reviews GCC free trade talks after West Asia disruption
The six-nation GCC is India’s largest trading partner bloc, with bilateral trade of USD 178.56 billion in 2024-25
India and the Gulf Cooperation Council have reviewed negotiations for a free trade agreement and discussed measures to strengthen bilateral relations ahead of a ministerial meeting scheduled for next month.
India’s Ambassador to Saudi Arabia, Vipul, held wide-ranging discussions with GCC Secretary General Jasem Mohamed Albudaiwi in Riyadh on Sunday.
The two sides assessed the progress of FTA negotiations, explored opportunities for greater high-level engagement and reviewed preparations for the forthcoming ministerial meeting, according to statements issued after the talks.
They also exchanged views on regional and international developments and underlined the importance of continued consultation on matters of common interest to support security and stability in the region.
The discussions assume significance as India and the GCC resumed negotiations in February for a comprehensive trade agreement intended to expand trade and investment. The talks were temporarily interrupted in June amid the crisis in West Asia.
The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Established in 1981, it functions as a political, economic and security grouping.
The bloc is India’s largest trading partner, with two-way trade reaching USD 178.56 billion in 2024-25 and accounting for 15.42 per cent of India’s total global trade.
India exported goods worth about USD 56.87 billion to GCC countries during the period, while imports were valued at USD 121.68 billion.
Engineering products, rice, textiles, machinery, gems and jewellery are among India’s principal exports to the region. Its imports are led by crude oil, liquefied natural gas, petrochemicals and gold.
GCC countries are also important investors in India, with their cumulative investments exceeding USD 31.14 billion as of September 2025. Nearly 10 million Indians live in the Gulf region, which remains a major source of remittances.
The latest discussions revive a negotiating process that began with rounds of talks in 2006 and 2008. Those negotiations were subsequently put on hold after the GCC deferred FTA discussions with other countries and economic blocs.
India already has a trade agreement in effect with the UAE and has signed a Comprehensive Economic Partnership Agreement with Oman.
With PTI inputs