India has also signed terms of reference (ToR) to enter trade pacts with Israel, the Maldives, the Philippines and the Gulf Cooperation Council (GCC)

Days after securing deals with the European Union and the US, India is now working on negotiating Free Trade Agreements (FTA) with Australia, Chile, Peru, the Eurasian Economic Union (EAEU) and Sri Lanka. New Delhi is also reviewing current trade agreements with Asean member states and South Korea.

Apart from this, India has signed terms of reference (ToR) to enter trade pacts with Israel, the Maldives, the Philippines and the Gulf Cooperation Council (GCC). MoS of Commerce and Industry, Jitin Prasada, has said, “India is actively participating in regional and plurilateral platforms to support diversified and sustainable supply chains, including the Indo-Pacific Economic Framework for Prosperity (IPEF).”

STORY CONTINUES BELOW THIS AD

Bilateral trade between India and the GCC reached approximately $179 billion in 2024–25, driven by CEPA agreements with the United Arab Emirates and Oman. India’s key exports to the region include gems and jewellery, metals, electronics, and chemicals.

Building on this momentum, New Delhi is now working toward a free trade agreement with the six-member West Asian bloc comprising Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain.

The scope of new FTAs

The new FTAs will provide a significant boost to India’s existing trade agreements with the UAE and Oman. It will help Indian exports eliminate duties and non-tariff barriers with other countries, too.

During the signing ceremony, Union Trade Minister Piyush Goyal emphasised that the FTA will be a force multiplier for the global good. He underlined that the FTA will bring predictability and stability, taking the relationship between the two sides to greater heights.

He expressed confidence that FTA will enable the seamless flow of goods and services and attract investments while expanding job opportunities and fostering food and energy security for the region, elevating our deep economic ties.

“It is most appropriate that we now enter into a much stronger and more robust trading arrangement, which will enable a greater free flow of goods and services, bring predictability and stability to policy, and help encourage a greater degree of investment,” Goyal said.

Delighted to witness the signing of the Terms of Reference for the FTA between India and the Gulf Cooperation Council (GCC) by our chief negotiators.

Under PM @NarendraModi ji’s leadership, our ties with the 6-nation GCC (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the… pic.twitter.com/7tPHmKSStk

— Piyush Goyal (@PiyushGoyal) February 5, 2026STORY CONTINUES BELOW THIS ADIndia-Gulf trade

India primarily imports crude oil and natural gas from Gulf countries such as Saudi Arabia and Qatar, while exporting pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals to the region.

India’s exports to the GCC rose marginally by nearly one per cent to about $57 billion in 2024–25, up from $56.32 billion in 2023–24. Imports, however, jumped 15.33 per cent to $121.7 billion from $105.5 billion a year earlier.

As a result, bilateral trade between India and the GCC expanded to $178.7 billion in 2024–25, compared with $161.82 billion in the previous fiscal year. The UAE emerged as India’s third-largest trading partner during the period, with exports totalling $36.63 billion and imports at $63.40 billion, leading to a trade deficit of $26.76 billion in 2024–25.

STORY CONTINUES BELOW THIS ADHomeWorldFrom Australia to Sri Lanka to the Gulf, India expands push for new FTAsEnd of Article