India, GCC ink terms of reference to formally launch trade talks, Pg17

Key Highlights:

• India and the Gulf Cooperation Council (GCC) signed Terms of Reference (ToR) on Thursday to formally begin negotiations for a Free Trade Agreement (FTA).
• The ToR outlines the scope and procedures for the proposed trade agreement.
• The GCC is a union of six countries: Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain.
• Bilateral trade between India and the GCC is approximately $179 billion.
• About 10 million Indians currently reside and work in the GCC region.

Detailed Insights:

• The proposed FTA aims to boost bilateral trade and investments, facilitate the free flow of goods and services, and bring predictability and stability to policy.
• The agreement is expected to enhance food and energy security for GCC nations and India, respectively, leveraging India's position as a major food grain producer and the GCC's role as oil and gas exporters.
• India has already implemented an FTA with the UAE in May 2022 and signed a Comprehensive Economic Partnership Agreement with Oman in December 2025, indicating a strategic focus on strengthening economic ties with the Gulf region.
• The FTA is expected to provide opportunities for Indian infrastructure companies in the GCC region and benefit India's petrochemical industry.
• Previous FTA talks with the GCC were stalled after two rounds in 2006 and 2008, as the GCC deferred negotiations with all countries; the current move signals a resumption of these discussions.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers such as tariffs and quotas.
• Terms of Reference (ToR): A document outlining the scope, objectives, and framework for a project or negotiation.
• Gulf Cooperation Council (GCC): A political and economic alliance of six Middle Eastern countries: Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain.