India's proposed FTA with Gulf countries to boost agri, pharma, services sectors
New Delhi, Sep 27
India and the Gulf Cooperation Council are working to unlock the full bilateral trade potential through the India-GCC Free Trade Agreement, which was discussed between the two sides on the sidelines of the UN General Assembly in New York over the weekend.
The trade talks were held between India's External Affairs Minister S. Jaishankar and Gulf officials, including Saudi Minister of State for Foreign Affairs Adel Al-Jubeir and GCC Secretary General Jasem Mohamed Albudaiwi.
GCC-India bilateral trade was worth more than $178 billion in the 2025-26 fiscal year, with the Gulf region also home to about 10 million Indian diaspora, according to an article in the Arab News.
"Commencing Free Trade Agreement negotiations between the GCC and India marks a pivotal milestone toward broadening economic and investment horizons," the GCC Secretariat said in a statement.
During the meeting, Albudaiwi also "emphasised the imperative of deepening collaboration" across various areas, including energy, technology, innovation and digital transformation.
India already has a Comprehensive Economic Partnership Agreement in place with Oman and the UAE, both GCC members.
A free trade agreement with the GCC is likely to benefit Delhi, providing better market access for Indian exports, deeper integration with supply chains, and greater opportunities for Indian services and skilled professionals, the article stated.
While India's machinery, textiles, gems and jewellery industries traditionally benefit from an FTA, other sectors such as agriculture and processed foods, pharmaceuticals and medical devices, as well as services are expected to see greater advantages when it comes to the Gulf region, it added.
The GCC is one of India's largest trading partner blocs. Even at the individual-country level, the UAE ranks third, and Saudi Arabia ranks fifth among India's global trading partners. The FTA is expected to pave the way for building further on this economic relationship, the article added.
— IANS
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