India and Gulf Cooperation Council Sign Joint Statement on the India–GCC Free Trade Agreement

1. At a Glance

Joint Statement signed on 24 February 2026 in New Delhi between India and the Gulf Cooperation Council (GCC) formally launching negotiations for a comprehensive FTA [S1].
Follows the Terms of Reference (ToR) inked on 5 February 2026, sequencing the legal architecture for substantive talks [S1][S2].
GCC is India's largest trading-partner bloc (USD 178.56 bn in FY 2024-25, ~15.42% of India's global trade) — UPSC-relevant for GS-II (bilateral/regional groupings) and GS-III (external sector) [S3].

24 Feb 2026: Union Minister Piyush Goyal and GCC Secretary-General Jasem Mohamed Albudaiwi signed the Joint Statement at New Delhi, formally launching FTA negotiations [S1].
5 Feb 2026: ToR signed by Ajay Bhadoo (Additional Secretary & Chief Negotiator, Department of Commerce) and Dr. Raja Al Marzouqi (Chief Negotiator, GCC Secretariat) [S2].

GCC established 1981 (Riyadh) — regional bloc of six Gulf monarchies [S4].
2004: India–GCC Framework Agreement on Economic Cooperation signed [S4].
2006 & 2008: Two rounds of FTA talks held; paused thereafter [S4].
2022: India–GCC decided to pursue resumption of FTA negotiations [S5].
2024: India–UAE CEPA (operational since May 2022) and India–Oman FTA advanced as bilateral building blocks within the GCC space [S6].
2026: ToR (Feb 5) + Joint Statement (Feb 24) formally re-launched negotiations [S1][S2].

Implementing Ministry (India): Ministry of Commerce & Industry; Department of Commerce is the nodal agency [S1].
GCC Members (6): Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE [S3].
GCC HQ: Riyadh, Saudi Arabia (founded 1981) [S4].
Bilateral trade FY 2024-25: USD 178.56 bn (Exports USD 56.87 bn; Imports USD 121.68 bn); 15.42% of India's global trade [S3].
5-year avg growth: 15.3% p.a. [S3].
India's exports to GCC: engineering goods, rice, textiles, machinery, gems & jewellery [S3].
India's imports from GCC: crude oil, LNG, petrochemicals, gold [S3].

Economic: GCC supplies the bulk of India's hydrocarbons; an FTA could lock in energy security while opening Gulf markets for Indian engineering goods, agri-produce, textiles [S3]. Risk: widening trade deficit (imports USD 121.68 bn vs exports USD 56.87 bn) [S3].
Geopolitical / Strategic: Consolidates India's "Look West"/Link-West" policy; complements I2U2 and IMEC corridor; counters China's growing Gulf footprint [S4].
Diaspora / Social: ~8.9 million Indian nationals reside in GCC; FTA likely to address services, mobility, remittances (Gulf is India's top remittance source) [S4].
Administrative: Lead negotiator is Department of Commerce; coordination with MEA, Petroleum, Finance — federal-state interface limited (foreign trade is Union List, Entry 41).
Historical: Revives a process stalled since 2008, signalling shift in GCC's external-FTA posture (earlier reluctance after talks with EU/Australia paused) [S4][S5].

May 2022 → operational: India–UAE CEPA (bilateral precursor) [S6].
2024: India–Oman FTA negotiations advanced [S6].
5 Feb 2026: India–GCC ToR signed [S2].
24 Feb 2026: India–GCC Joint Statement signed, talks formally launched [S1].

Joint Statement signed on 24 February 2026 in New Delhi [S1].
Signatories: Piyush Goyal (India) and Jasem Mohamed Albudaiwi (GCC Sec-Gen) [S1].
ToR signed on 5 February 2026 [S1][S2].
GCC = 6 members: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE [S3].
GCC founded in 1981, HQ Riyadh [S4].
India–GCC Framework Agreement on Economic Cooperation: 2004 [S4].
Earlier FTA rounds: 2006 and 2008, paused thereafter [S4].
FY 2024-25 bilateral trade: USD 178.56 billion [S3].
GCC share in India's global trade: 15.42% [S3].
India's exports to GCC FY 2024-25: USD 56.87 bn; Imports: USD 121.68 bn [S3].
5-year average trade growth: 15.3% p.a. [S3].
Indian chief negotiator (ToR stage): Ajay Bhadoo, Addl. Secretary, Dept of Commerce [S2].
GCC chief negotiator: Dr. Raja Al Marzouqi [S2].
Nodal Indian ministry: Ministry of Commerce & Industry (not MEA) [S1].

GS-II: "Bilateral, regional and global groupings involving India" — India and the Gulf region.
GS-III: "Effects of liberalisation on the economy" / "External sector — FTAs".
Plausible stems: 1. "India's revived FTA push with the GCC is as much strategic as economic." Examine. 2. Evaluate the implications of an India–GCC FTA on India's energy security, trade deficit and diaspora interests. 3. Compare the India–UAE CEPA experience with the prospects of a broader India–GCC FTA.

GCC members confusion: Iraq, Iran, Yemen, Jordan are NOT GCC members — only 6 monarchies.
Ministry mix-up: Lead is Commerce & Industry, not MEA (MEA only co-ordinates).
Date confusion: ToR = 5 Feb 2026; Joint Statement = 24 Feb 2026 — distinct instruments.
GCC ≠ Arab League ≠ OIC — different memberships and mandates.
It is a Joint Statement launching negotiations, not the FTA itself — agreement is yet to be concluded.

[S1] India and Gulf Cooperation Council Sign Joint Statement on the India–GCC FTA — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2232327 — (tier 1)
[S2] India and GCC Sign Terms of Reference for India–GCC FTA — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2223875 — (tier 1)
[S3] India's Trade Partnerships Powering Global Integration and Growth — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2233417 — (tier 1)
[S4] Gulf Cooperation Council (GCC) Background and Objectives, MEA — https://www.mea.gov.in/Portal/ForeignRelation/Gulf_Cooperation_Council_MEA_Website.pdf — (tier 1)
[S5] India–GCC Decide to Pursue Resumption of FTA Negotiations — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1878714 — (tier 1)
[S6] India–Oman FTA to Unlock New Opportunities — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2205309 — (tier 1)