India and GCC Strengthen Ties with New Free Trade Agreement

India and the Gulf Cooperation Council (GCC) signed terms of reference to launch formal negotiations for a Free Trade Agreement (FTA) today, outlining the scope and goals of the new trade pact.

Commerce and Industry Minister Piyush Goyal emphasized the historical trade relationship between India and the GCC, underscoring the potential benefits of the agreement in boosting bilateral trade and investments. The deal is expected to eliminate trade barriers, promote energy and food security, and enhance infrastructure, particularly benefiting the technology and petrochemical industries.

With India's exports to the GCC growing slightly and imports rising significantly, the agreement promises to address trade deficits and facilitate economic diversification. The talks mark a revival of previously stalled discussions from 2006 and 2008, reflecting a strategic response to global economic uncertainties.