India's relationship with the Gulf Cooperation Council (GCC) nations is evolving into a major trade partnership. In 2024-25, the bilateral trade between India and the six-nation bloc reached a substantial $179 billion, driven by strong exports such as gems, metals, electronics, and chemicals. With an existing free trade pact with the UAE since 2022, and a recent agreement with Oman, India is now focused on formalizing a comprehensive free trade agreement (FTA) with the GCC. This new agreement promises to eliminate duties and non-tariff barriers, boosting Indian exports while enhancing energy and food security for both parties.
The Gulf region is an increasingly important market for India, thanks to its vast wealth from oil and gas exports and its strategic role as an energy partner. At the same time, India provides vital exports, including chemicals, machinery, and petrochemical products. The FTA is expected to increase trade further by reducing barriers, especially in sectors like information and communication technology, and petrochemicals, where Indian companies are looking to expand.
The terms of reference (ToR) for launching formal FTA negotiations were signed in early February 2026, signaling a new chapter in India's trade relations with the GCC. Commerce Minister Piyush Goyal emphasized that the FTA would bring predictability and stability to trade policies, encouraging further investment between the two regions. India’s trade with the GCC countries, including Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, is expected to grow, providing ample opportunities for both sides.
India’s young and skilled workforce will also play a key role, providing services and products that the GCC countries need, while the Gulf can offer diversified energy sources for India. As the agreement moves forward, both regions stand to benefit significantly, ensuring energy security for India while fostering greater economic growth in the Gulf. The expansion of India’s exports and the deepening ties with the Gulf nations mark a promising future for this partnership.
