Explainer: India-GCC FTA could boost trade, energy ties
India and the Gulf Cooperation Council (GCC) just agreed to start negotiating a free trade agreement—something that's been on pause since 2008.
The deal was signed in New Delhi on February 5, 2026, marking a big move for both sides after nearly two decades.
What does this FTA mean for India?
The GCC is one of India's major trading partners, with trade hitting $178.7 billion in 2024-25 (the 2024-25 fiscal year)—think oil and gas, pearls and precious and semi-precious stones, metals and imitation jewelry, electrical machinery, iron and steel, chemicals, and more.
Over 8 million Indians work in the Gulf region and send home $45 billion every year.
This FTA could mean lower tariffs on things like food processing and tech services, easier job mobility for Indian workers, and smoother recognition of qualifications.