India, Gulf Cooperation Council Agree On Terms To Begin Free Trade Pact Talks: Piyush Goyal

Last Updated:February 05, 2026, 14:20 IST

Piyush Goyal said India has agreed on terms to begin FTA talks with the Gulf Cooperation Council, calling it a revival of discussions that could boost trade and investment.

A file photo of Union Minister Piyush Goyal (PTI)

Commerce and Industry Minister Piyush Goyal on Thursday announced that India has signed the terms of reference to begin negotiations for a free trade agreement (FTA) with the six-nation Gulf Cooperation Council, calling the development a revival of talks that have been underway for nearly two decades.

Goyal described the moment as historic and said, “Truly a momentous day when we are signing the terms of reference of yet another free trade agreement, this time with our friends from the six nations which comprise the Gulf Cooperation Council."

“It is most appropriate that we now enter into a much stronger and robust trading arrangement which will enable greater free flow of goods, services, bring predictability and stability to policy, help encourage a greater degree of investments and take our bilateral relations to greater heights," he said.

The minister underlined that the proposed pact would not only deepen commercial ties but also enhance cooperation on geopolitical issues.

“The agreement with the GCC Group of six countries will further strengthen our relations, both on geopolitical and trading elements, will help draw greater amounts of investments, create job opportunities for Indians, and encourage the food security and energy security of both the GCC nations and India," he said.

“It would also give a message to the world of our deep ties and historic relations," he said, adding that closer ties would act as a “force multiplier for global good".

Drawing on details shared in government briefings, Goyal said the comprehensive FTA with all six Gulf nations would improve policy predictability and boost investment flows.

Food processing, infrastructure, petrochemicals and information and communications technology were among the sectors expected to benefit the most, with India’s trade with the bloc currently valued at $179 billion.

He also linked the GCC talks to India’s wider trade strategy, noting that the country has already concluded eight free trade agreements with developed economies, and that the next one would take the tally to nine.

These pacts, he said, cover 38 countries and are intended to help modernise India’s economy, expand export opportunities for farmers, fishermen and manufacturers, and support the country’s ambition to become a developed nation by 2047.

The Union Minister also outlined progress on India’s trade engagement with the United States.

He said New Delhi and Washington are expected to finalise and issue a joint statement on the first tranche of a bilateral trade agreement within four to five days, after which an executive order would be issued in the US to reduce tariffs on Indian goods to 18 per cent from the current combined levies.

“A more comprehensive and formal agreement is targeted for signing by mid-March," the minister said, adding that the joint statement would be followed by an exhaustive legal text.

He clarified that the first tranche does not include any investment commitments and that tariff reductions by India on certain American goods would take effect only after the legal agreement is concluded.

Earlier in Parliament, Goyal had said that India has protected sensitive sectors such as agriculture and dairy in the India-US deal, while creating new opportunities for MSMEs and skilled workers and strengthening bilateral ties under Prime Minister Narendra Modi’s economic vision.

Commerce Secretary Rajesh Agrawal also expressed confidence that the legal agreement for the first tranche could be signed by mid-March, paving the way for the tariff cuts to come into force.

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