Amid a rush of trade deals with advanced countries, India and the six-nation Gulf Cooperation Council (GCC), which includes the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman, have agreed on terms to begin negotiations for a free trade agreement, Union Minister Piyush Goyal announced Thursday.
The announcement comes days after India finalized a free trade pact with the European Union (EU) and sealed a trade deal with the United States. Goyal said the signing of the Terms of Reference (ToR) with the GCC will create a “robust” trading arrangement, enabling a freer flow of goods and services and encouraging more investments between the two regions, the Hindustan Times reports.
According to Reuters, Goyal highlighted that the trade pact could also help India diversify its energy sources — a point of interest following the recently-signed India-US trade deal, amid discussions on India’s energy ties with Russia. However, Indian authorities have yet to confirm any official position on that matter.
The development marks another step in India’s ongoing efforts to deepen economic ties with international partners. It comes weeks after UAE President Sheikh Mohamed bin Zayed Al Nahyan visited India for a brief three-hour trip, during which he met Prime Minister Narendra Modi to review the full scope of bilateral cooperation.
India’s trade relations with GCC nations are already strong. The country imports crude oil and natural gas from Saudi Arabia and Qatar, and exports products such as pearls, precious and semi-precious stones, metals, imitation jewelry, electrical machinery, iron, steel, and chemicals.
India has implemented a free trade pact with the UAE since May 2022 and signed a Comprehensive Economic Partnership Agreement (CEPA) with Oman in December 2025.
The agreement comes amid regional developments, including the UAE reportedly abandoning a proposal to operate Islamabad International Airport and Saudi Arabia’s 2025 Strategic Mutual Defence Agreement with Pakistan.
Despite these dynamics, India’s new engagement with the GCC represents a significant move to strengthen ties with Riyadh and other Gulf nations, signaling a major step forward in regional economic cooperation.
