NEW DELHI, FEB 5 /DNA/: The Gulf Cooperation Council and India relaunched negotiations for a free trade agreement by signing the terms of reference for the talks on Thursday, about two decades after a first attempt stalled.
India already has a Comprehensive Economic Partnership Agreement with two GCC members, Oman and the UAE, signed last year and in 2022, respectively.
Its trade negotiations with the GCC — members of which also include Saudi Arabia — stalled following a framework agreement signed in 2004 and two rounds of talks held in 2006 and 2008.
“It is most appropriate that we now enter into a much stronger and robust trading arrangement which will enable greater free flow of goods, services, bring predictability and stability to policy, help encourage greater degree of investments and take our bilateral relations between the six-nations GCC group and India to greater heights,” India’s Commerce Minister Piyush Goyal said in a press conference in New Delhi on Thursday.
GCC-India bilateral trade was worth more than $178 billion in the 2024-25 fiscal year, accounting for more than 15 percent of India’s global trade. The region is also home to about 10 million Indians who live and work in the Gulf.
The relaunched negotiations with Gulf countries came as Delhi accelerated discussions to finalize several trade agreements in recent months.
Earlier this week, India reached a trade deal with the US after months of friction, following recent conclusions of similar negotiations with New Zealand and the EU.
“As, I believe, the GCC and India come closer together, we will become a force multiplied for global good,” Goyal said.
Food processing, infrastructure, petrochemicals and information and communications technology are sectors that will benefit from India-GCC FTA, he added.
The free trade negotiations are taking place at a time when globalization was “under attack,” said GCC’s chief negotiator, Dr. Raja Al-Marzouqi.
“It’s a message, a signal for the whole globe and it’s important for us at this time to try and be more cooperative,” he told reporters in New Delhi, adding that the first round of talks was likely to take place at the GCC headquarters in Riyadh.
“When we agree, we will contribute as long as possible to the stability of the global economy.”
