India and the Gulf Cooperation Council (GCC) are poised to commence discussions on a free trade agreement (FTA) in the coming month. This development follows the appointment of chief negotiators from both sides, resolving the previous delay in initiating talks. The GCC, consisting of Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, has shown eagerness to expedite negotiations, as confirmed during discussions between Saudi Arabia’s Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi in September 2023.
The groundwork for this FTA dates back to the signing of a Framework Agreement on Economic Cooperation between India and the GCC in August 2004. While initial negotiations began with two rounds in 2006 and 2008, a third round was deferred by the GCC with all countries and economic groups. Notably, the GCC is a significant trading partner for India, with trade exceeding $240 billion during FY23. India predominantly imports crude oil and natural gas from Saudi Arabia and Qatar, while exporting various goods to these countries, resulting in a substantial economic relationship.
This development holds great promise for bolstering economic ties between India and the GCC, creating opportunities for increased trade and cooperation.
