India and the Gulf Cooperation Council (GCC) — a grouping of six influential Middle Eastern nations — are set to take a significant step forward in strengthening their economic ties by formally launching discussions on a comprehensive free trade agreement (FTA). On Thursday, February 5, 2026, officials from both sides will sign the Terms of Reference (ToR), which essentially lay out the framework, scope, and negotiations roadmap for the proposed trade pact. The signing ceremony will be presided over by Commerce and Industry Minister Piyush Goyal, underscoring the importance that New Delhi places on this strategic engagement.

Key Highlights

• India and GCC to sign Terms of Reference on February 5, formally launching FTA negotiations.
• Proposed pact aims to boost trade, investment, services access, and strengthen India–Middle East economic ties.

The Gulf Cooperation Council includes Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain — countries that have maintained long-standing trade and energy links with India, especially through crude oil and gas imports. These ToRs will guide discussions that aim to create a robust and mutually beneficial trade regime, reviving negotiations that began decades ago. Previous rounds of talks were held in 2006 and 2008, but stalled when the GCC paused talks with many prospective partners.

India already has separate trade agreements in place with two GCC members: a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, effective since May 2022, and a similar pact with Oman signed in December 2025. These bilateral deals have helped lay the groundwork for broader discussions with the GCC as a bloc, aiming to deepen market access and investment flows across the region.

Also Read: India-US Trade Talks Advance as Jaishankar Meets US Treasury Chief

Trade figures between India and the GCC reflect the growing economic interdependence. India’s exports to the GCC increased modestly, while imports, particularly of crude oil, have risen significantly, contributing to a substantial trade volume between the countries. Beyond goods, millions of Indian expatriate workers reside in GCC countries, sending significant remittances back home and strengthening people-to-people ties.

If successfully negotiated, the proposed FTA could not only streamline trade by cutting tariffs and reducing barriers but also enhance cooperation in services, investment and supply chain linkages. This initiative aligns with India’s broader strategy to diversify its economic partnerships and secure new markets for exporters while ensuring energy security and deeper economic cooperation with the strategically important Gulf region.