India and the GCC have signed the Terms of Reference for a complete Free Trade Agreement on February 5, 2026, which is crucial for India's future trade and economic development. This is incredibly important, as negotiations for the FTA have been suspended since 2011. Now, both sides are keen to strengthen their economic relationship. It is an exciting moment for both parties.
The six countries in the GCC are Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. They are India's primary trading partners today. Trade with these countries are over $178.56 billion in 2024-25, which is over 15% of total Indian trade across the globe.
India depends heavily on importing crude oil, natural gas (LNG), and petrochemical products from the GCC countries, which require energy for transportation, factories or everyday use. Meanwhile Indian industries exports a lot to the Gulf countries like engineering goods, rice, garments, precious stones and jewelry. These exports support Indian industries and help keep jobs in the country.
A significant goal is to provide energy and food for everyone. India requires a continuous supply of oil and gas from the GCC countries. In the meantime, India is a major supplier of food to GCC countries. One of India's primary objectives is to become a major food supplier to the GCC nations.
GCC sovereign wealth funds have put in over $31 billion into India by 2025, mostly in areas like infrastructure, technology, and renewable energy. About 10 million Indians are living and working in GCC countries. They send big amounts of money to India and serve as a connection between the two areas. The India–GCC FTA can help boost India's economy, increase trade, draw more investments, and create a solid economic link between India and the Gulf countries.
