India and the Gulf Cooperation Council are making significant progress towards a broader free trade agreement to deepen economic ties and expand cooperation in energy, technology, and services, potentially transforming regional trade dynamics.
India and the Gulf Cooperation Council are edging closer to a free trade agreement that could deepen economic links already worth more than $178 billion in the 2025-26 fiscal year, according to reporting cited by Arab News and the Indian news agency IANS. The latest discussions took place on the sidelines of the United Nations General Assembly in New York, where External Affairs Minister Subrahmanyam Jaishankar met Gulf counterparts, including Saudi Minister of State for Foreign Affairs Adel Al-Jubeir and GCC Secretary General Jasem Mohamed Albudaiwi.
The GCC Secretariat said the start of negotiations marks a significant step towards widening trade and investment ties. Albudaiwi also stressed the need to expand co-operation in energy, technology, innovation and digital transformation, underscoring that the proposed pact is being framed as more than a tariff-cutting exercise. India already has comprehensive trade agreements with two GCC members, the United Arab Emirates and Oman, giving New Delhi a practical base from which to push for a broader regional deal.
Officials and trade observers say the proposed agreement could be especially valuable for Indian exporters in agriculture, processed foods, pharmaceuticals, medical devices and services. These are sectors that may gain from easier access to Gulf markets, particularly as Indian companies seek to sell more goods and expertise abroad and as Gulf economies continue to diversify beyond hydrocarbons. Traditional strengths such as machinery, textiles, gems and jewellery are also expected to benefit, but the newer opportunity lies in higher-value sectors tied to health care, food security and professional services.
The GCC remains one of India’s most important trading blocs, and the relationship is already anchored by strong bilateral ties with individual members. The United Arab Emirates is India’s third-largest trading partner, while Saudi Arabia ranks fifth, according to the reporting. With around 10 million Indians living in the Gulf, the proposed accord also carries weight for mobility, services trade and the wider economic interests of a large expatriate community.
Momentum behind the talks has been building for months. India’s commerce ministry said in February that the two sides had signed terms of reference for the negotiations in New Delhi, setting out the scope and structure of the discussions. That framework suggests the current push is moving beyond exploratory contact and towards a formal process aimed at resolving issues such as market access, rules of origin and the movement of professionals.
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