India and GCC Review Free Trade Agreement Negotiations in Riyadh

India and the Gulf Cooperation Council have reviewed the progress of negotiations for a free trade agreement during high-level talks held in Riyadh. The discussions took place between India’s Ambassador to Saudi Arabia, Vipul, and GCC Secretary General Jasem Mohamed Albudaiwi. The two sides also examined ways to strengthen overall India-GCC relations and reviewed preparations for a ministerial meeting scheduled for the following month.

The meeting carries particular significance as India and the GCC formally resumed negotiations earlier in the year for a comprehensive trade agreement intended to expand bilateral trade and investment. Talks had been temporarily interrupted in June because of developments in West Asia. The GCC continues to rank as India’s largest trading partner bloc, with two-way trade reaching USD 178.56 billion in 2024-25 and accounting for 15.42 per cent of India’s total global trade.

Image from News On AIR

Background to the Current Negotiations

The present process builds on earlier efforts that began with a framework agreement in 2004, followed by negotiating rounds in 2006 and 2008. Those discussions were later deferred when the GCC paused free trade talks with external partners. Momentum returned in recent years and culminated in the signing of Terms of Reference in New Delhi on 5 February 2026. A Joint Statement formally launching the negotiations was signed later that month by Commerce and Industry Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi.

The Terms of Reference set out the scope of discussions across trade in goods, customs procedures, trade in services, digital trade, sanitary and phytosanitary measures, intellectual property rights, and cooperation involving micro, small and medium enterprises. The first formal negotiating round had been expected in the second half of 2026, with the GCC Secretariat offering to host the talks in Riyadh.

Scale of Bilateral Trade and Investment

Official figures show that India’s exports to the GCC stood at approximately USD 56.87 billion in 2024-25, while imports were valued at USD 121.68 billion. Principal Indian exports include engineering goods, rice, textiles, machinery, and gems and jewellery. Imports from the GCC are dominated by crude oil, liquefied natural gas, petrochemicals and gold. Over the past five years, trade between India and the GCC has expanded at an average annual rate of about 15.3 per cent.

Within the bloc, the United Arab Emirates is India’s largest trading partner, with bilateral trade crossing USD 100 billion in 2024-25. Saudi Arabia ranks second, followed by Qatar, Oman, Kuwait and Bahrain. India already has a free trade agreement in force with the UAE, which took effect in May 2022, and signed a Comprehensive Economic Partnership Agreement with Oman in December 2025.

The GCC countries also represent an important source of investment for India, with cumulative investments exceeding USD 31 billion as of September 2025. The region remains a major destination for Indian workers, hosting nearly 10 million members of the Indian community and serving as a significant source of remittances.

Regional Context and Forward Momentum

During the Riyadh meeting, both sides reaffirmed the importance of continued coordination and consultations on issues of mutual interest in order to support regional security and stability. The Indian Embassy in Riyadh noted that the discussions covered India-GCC cooperation, including the free trade agreement negotiations, the strengthening of high-level engagements, and an exchange of views on regional and global developments of common concern.

The proposed agreement is expected to open opportunities in sectors such as food processing, infrastructure, petrochemicals and information and communications technology. Officials on both sides have described the revival of talks as a signal of shared commitment to deeper economic partnership at a time of wider global uncertainty.

The MGMM Outlook 

India and the Gulf Cooperation Council (GCC) have renewed momentum in their proposed Free Trade Agreement through high-level discussions in Riyadh, reaffirming their commitment to expanding trade, investment, and strategic cooperation. As India's largest trading partner bloc, the GCC accounts for over USD 178 billion in annual bilateral trade, making the agreement an important step toward strengthening economic ties across sectors including goods, services, digital trade, and MSME collaboration.

The continued progress in these negotiations reflects the growing importance of India's partnerships in the Gulf region, where nearly 10 million Indians live and contribute to strong people-to-people and economic connections. A comprehensive FTA has the potential to enhance market access, boost investment, create new opportunities for Indian businesses, and further deepen India's long-term engagement with one of the world's most significant economic regions.

(Sources: India Today, LiveMint, Economic Times)