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On February 5, 2026, India and the GCC signed the Terms of Reference (ToR) for a Free Trade Agreement in New Delhi, marking the start of formal negotiations. The FTA aims to enhance bilateral trade projected at $178.56 billion, with India exporting engineering goods, textiles, and pharmaceuticals, and importing crude oil and LNG.

The agreement will cover sectors including services, investment, and e-commerce, facilitating market access and reducing trade barriers. The GCC represents a market of 61.5 million people and a GDP of $2.3 trillion, making this agreement strategically significant for India’s economic interests in the region.