India and the six-nation Gulf Cooperation Council have agreed on terms to begin negotiations for a free trade agreement, Union Minister Piyush Goyal said on Thursday. The development comes days after India finalized a free trade agreement with the European Union (EU) and sealed a trade deal with the United States.
India and GCC agree on terms to launch a free trade agreement (X/@MohamedBinZayed)In addition to the United Arab Emirates and Saudi Arabia, Qatar, Kuwait, Bahrain and Oman are part of the GCC. Goyal made the announcement as India and the Gulf countries signed the bloc’s Terms of Reference (TOR). Goyal said the “robust” trading system would enable greater free flow of goods and services and encourage more investment.
He also said the deal would help with diversification of its energy sources, a comment that holds significance in light of the recently sealed India-US trade deal after which Trump demanded that India sever its energy ties with Russia.
This marks another step for India in strengthening economic ties with other countries The agreement between India and the GCC comes weeks after United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan paid for a visit to India, a visit that created buzz due to its duration.
The UAE President stayed in India for just three hours, during which he also met Prime Minister Narendra Modi and both leaders reviewed the full scope of bilateral cooperation between the two countries.
UAE abandons Pak airport dealJust weeks before India’s agreement to begin negotiating a free trade agreement with the GCC, the bloc of Gulf states, the UAE is said to be a key member. Abandoned offer to operate Islamabad International Airport – an arrangement that has been under discussion since August 2025.
The development created a big buzz, as it was linked to the brief visit of the UAE President to India that came a few days earlier.
