Piyush Goyal Welcomes GCC Secretary General, Signs Joint Statement On FTA: 'Major Step Toward Deep Collaboration'

(MENAFN- Live Mint) India and the Gulf Cooperation Council (GCC) on Tuesday formalised the start of negotiations for a comprehensive and mutually beneficial Free Trade Agreement (FTA) by signing a joint statement.

The agreement to begin talks was endorsed by India's Union Minister of Commerce and Industry, Piyush Goyal, and the GCC Secretary General, Jasem Mohamed Al Budaiwi.

What did Goyal say?

Goyal took to X and stated, "Delighted to welcome H.E. Jasem Mohammad Al Budaiwi, Secretary General of the Gulf Cooperation Counci, @GCCSG. We signed the Joint Statement for the India-GCC FTA, building on the Terms of Reference signed on February 5, 2026, formally launching negotiations for a comprehensive and mutually beneficial agreement."

"This marks a major step toward deeper collaboration in key strategic areas, including trade in goods, customs procedures, services, digital trade, cutting-edge technologies, and enhanced investment flows between India and the six GCC member nations," he added.

Goyal mentioned that the joint statement, along with the Terms of Reference (ToR) for the FTA signed on February 5, represents an important milestone in ties between India and the member states of the Gulf Cooperation Council.

He noted that the partnership, built on a long history and strong cultural connections, is expected to gain further momentum through a broad-based and mutually beneficial FTA. He also stressed that, in a time of global uncertainty, the launch of negotiations for a strong trade framework is particularly timely, as it will help both sides make the most of their shared strengths and complementarities.

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Jasem Mohamed Albudaiwi emphasised that FTA will serve as an important tool to further strengthen trade and investment ties between India and GCC countries by infusing predictability and certainty for businesses.

As per the information shared by the Ministry of Commerce & industry, GCC is India's largest trading partner bloc with bilateral trade reaching USD 178.56 billion (Exports: USD 56.87 billion; Imports: USD 121.68 billion) in FY 2024-25, accounting for 15.42% of India's global trade.

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Trade between India and the Gulf Cooperation Council has grown consistently over the past five years, recording an average annual increase of 15.3 percent.

India's main exports to GCC countries consist of engineering products, rice, textiles, machinery, and gems and jewellery.

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Major imports from the GCC largely consist of crude oil, liquefied natural gas (LNG), petrochemicals, and precious metals such as gold. Together, the GCC nations account for a market of about 61.5 million people as of 2024 and have a combined GDP of approximately USD 2.3 trillion at current prices, making the bloc the world's ninth-largest economy.

The GCC region is an important source of foreign direct investment for India, with cumulative inflows surpassing USD 31.14 billion as of September 2025.

The GCC also hosts nearly 10 million Indians, forming a vibrant community that serves as a living link between the two sides.

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