India, Gulf Cooperation Council To Begin FTA Talks In September 2026

India and the Gulf Cooperation Council (GCC) are expected to hold a physical meeting for their upcoming trade pact in September, CNBC-TV18 reported.

Official talks began in February. India and the GCC signed the Terms of Reference for a Free Trade Agreement (FTA) on February 5, 2026. The document defines the scope, rules and framework for the upcoming trade pact.

Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi signed a joint statement in New Delhi on February 24 to initiate the process.

Bypassing Shipping Hurdles

The proposed pact will include a Rules of Origin clause. The provision aims to lower transit costs and reduce transhipment-related friction across the six-member bloc, which comprises Saudi Arabia, the UAE, Oman, Qatar, Kuwait and Bahrain.

Shipping challenges in the Strait of Hormuz have forced vessels to reroute through the UAE, Oman and the Red Sea. Qatar, the UAE, Kuwait and Bahrain lie almost entirely within the strait, while India already maintains separate trade agreements with the UAE and Oman.

The clause will secure preferential tariff access for Indian export. Goods will receive these benefits even if they are routed elsewhere to bypass war-affected sea routes.

Deepening Economic Ties

The GCC is India's largest trading partner bloc. Bilateral trade reached $178.56 billion in FY2024-25, comprising exports of $56.87 billion and imports of $121.68 billion, representing 15.42% of India's total global trade. Over the past five years, trade between India and the GCC has grown steadily, recording an average annual growth rate of 15.3%.

India's key exports to the region include engineering goods, rice, textiles, machinery, and gems and jewellery. Imports are dominated by crude oil, LNG, petrochemicals and precious metals such as gold.

The six-nation bloc represents a $2.3 trillion economy with 61.5 million people (2024), making it the world's ninth-largest economy. Cumulative foreign direct investment from the region into India exceeded $31.14 billion as of September 2025. Saudi Arabia is the largest economy in the GCC and has a population and land area larger than those of all the other member states combined.

Broad trade negotiations resumed in 2022 after initially starting in 2004. The region hosts nearly one crore Indian workers, and bilateral trade stood at $161.59 billion in FY2023-24, with exports of $56.3 billion and imports of $105.3 billion.