India and GCC discuss Free Trade Agreement to boost bilateral trade

India and the Gulf Cooperation Council (GCC) are working to unlock the full potential of bilateral trade through a Free Trade Agreement (FTA). Discussions regarding the pact took place in New York on the sidelines of the United Nations General Assembly between Indian External Affairs Minister S. Jaishankar, GCC Secretary-General Jassim Mohammed Albudaiwi, and Saudi Arabia’s Minister of State for Foreign Affairs Adel al-Jubeir.

Bilateral trade between the GCC and India exceeded $178 billion in the 2025-26 fiscal year, supported by a diaspora of approximately 10 million Indians in the Gulf region. The GCC Secretariat noted that initiating FTA negotiations is a “significant milestone toward expanding the scope of economic and investment cooperation.”

Key areas for deepened cooperation include energy, technology, innovation, and digital transformation. While India already holds economic partnership agreements with GCC members Oman and the UAE, a broader FTA is expected to benefit Indian exports in machinery, textiles, gems, jewelry, agriculture, pharmaceuticals, and medical devices, while providing better market access and supply chain integration.