India and GCC Sign Terms of Reference for Free Trade Agreement to Enhance $178B Bilateral Trade
India and the Gulf Cooperation Council (GCC) have signed the Terms of Reference (ToR) for a Free Trade Agreement (FTA) in New Delhi, aiming to boost bilateral trade projected at $178.56 billion. The ToR paves the way for negotiations to improve market access, attract investments, and create jobs. Key areas include goods, services, investment, and e-commerce. The agreement is expected to enhance India’s strategic economic ties with the GCC, which includes six Gulf states and has a significant Indian expatriate community.
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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.
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