India to Restart Free Trade Talks with GCC, Says Piyush Goyal

Union Commerce Minister Piyush Goyal on Thursday announced that India will resume negotiations for a free trade agreement (FTA) with the Gulf Cooperation Council (GCC), marking a major step in strengthening economic ties with the Gulf region. The announcement comes soon after India finalised major trade agreements with the European Union and the United States.

The GCC is a bloc of six Gulf nations — Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain. Officials said the renewed talks are aimed at expanding trade and investment cooperation between India and the region.

Speaking on the proposed agreement, Goyal said the FTA would deepen relations between India and the GCC, noting that the two sides have maintained trade links for over 5,000 years. He also highlighted the presence of nearly 10 million Indians living and working in GCC countries, contributing significantly to their economies.

“It is most appropriate that we now enter into a stronger and more robust trading arrangement that will allow a greater flow of goods and services, bring predictability and stability to policy, and encourage higher investment,” the minister said.

Within the GCC, the UAE and Saudi Arabia remain India’s largest trading partners.

Regional Context

The decision to revive FTA talks comes months after Saudi Arabia and Pakistan renewed their strategic partnership. In September 2025, the two countries signed a Strategic Mutual Defence Agreement, reviving earlier security cooperation.

This followed heightened tensions between India and Pakistan after the Pahalgam terror attack in April 2025, in which 26 people were killed. India had blamed Pakistan-based terror groups for the incident and later launched military operations in response.

Shifting Gulf Dynamics

Meanwhile, Pakistan’s ties with some Gulf nations appear to have weakened. Following UAE President Sheikh Mohamed bin Zayed Al Nahyan’s recent visit to India, Abu Dhabi reportedly scrapped a major airport management deal with Pakistan.

According to Pakistani media reports, the agreement was shelved after Islamabad failed to finalise a suitable local partner. Diplomatic sources also suggest that relations cooled further after Pakistan’s defence pact with Saudi Arabia.

In contrast, India’s relationship with the UAE has continued to strengthen. After Al Nahyan’s visit to New Delhi, both countries agreed to deepen cooperation and set a target of doubling bilateral trade to $200 billion by 2032.