New Delhi, Feb 5 (PTI) India and the six-nation bloc of Middle Eastern nations, the Gulf Cooperation Council (GCC), on Thursday inked terms of reference on Thursday for starting talks for a Free Trade Agreement (FTA).

The terms of reference (ToR) outline the scope and modalities of a proposed trade pact.

Commerce and Industry Minister Piyush Goyal presided over the signing ceremony of the ToRs with GCC.

GCC is a union of six countries in the Gulf region -- Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain.

Goyal said that the agreement will help boost bilateral trade and investments between the two.

He added that about 10 million Indians are living and working in the GCC region.

India has already implemented a free trade pact with the UAE in May 2022.

India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025.

Launch of FTA talks with the GCC would be a kind of resumption of the negotiations, as the earlier two rounds of negotiations were held in 2006 and 2008 between the two regions.

The third round did not happen as GCC deferred its negotiations with all countries and economic groups.

India imports predominantly crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals to these countries.

India's exports to the GCC grew by about one per cent to about USD 57 billion in 2024-25 against USD 56.32 billion in 2023-24. Imports rose by 15.33 per cent to USD 121.7 billion in 2024-25 from USD 105.5 billion in 2023-24.

Bilateral trade has increased to USD 178.7 billion in 2024-25 from USD 161.82 billion in 2023-24.

The UAE was India's third-largest trading partner in the last fiscal.

India's exports to the nation stood at USD 36.63 billion, while imports were USD 63.40 billion in the last fiscal, resulting in a trade deficit of USD 26.76 billion in 2024-25.

Saudi Arabia was India's fifth-largest trading partner during the last fiscal.

Exports to the kingdom were USD 11.75 billion, while imports stood at USD 30.12 billion, leading to a trade deficit of USD 18.36 billion in 2024-25.

Qatar ranked as India's 22nd-largest trading partner last fiscal. Exports stood at USD 1.68 billion, while imports were USD 12.46 billion, leaving a trade deficit of USD 10.78 billion in 2024-25. India mainly imports liquefied natural gas (LNG) from Qatar, while exporting products ranging from cereals to meat, fish, chemicals and plastics.

Oman was the 28th largest trading partner of India in 2024-25. Exports stood at USD 4 billion, while imports aggregated to USD 6.54 billion. The trade deficit was 2.48 billion.

Kuwait ranked 29th among India's trading partners in 2024-25. Exports stood at USD 1.93 billion, while imports were USD 8.28 billion, leading to a trade deficit of USD 6.35 billion.

Similarly, India's outbound shipments to Bahrain, which is the 65th largest trading partner of India, were USD 797.47 million in the last fiscal. Imports were USD 843.44 million, leaving a trade deficit of USD 45.97 million in 2024-25. PTI RR DR DR

India and the Gulf Cooperation Council sign terms to launch FTA negotiations to expand trade and investment ties. The terms of reference set the scope and modalities to commence negotiations on a free trade agreement between India and the Gulf Cooperation Council, providing a procedural and substantive roadmap to address market access, tariff and non tariff measures, investment facilitation and trade in goods and services, informed by existing bilateral pacts and prevailing trade patterns, including substantial energy imports, exports of manufactured goods, and significant trade deficits with key GCC partners.