India and the six-nation Gulf Cooperation Council (GCC) have signed the Terms of Reference (ToR) for a proposed free trade agreement (FTA), marking a significant step towards formal negotiations, Commerce and Industry Minister Piyush Goyal said in a video message shared on X.

Calling it a “momentous day”, Goyal said the signing of the ToR lays the foundation for an FTA between India and the GCC, which comprises Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain. “A momentous day as we sign the Terms of Reference for an FTA between India and the six-nation Gulf Cooperation Council,” he said.

Goyal noted that discussions on an India–GCC free trade agreement have been ongoing for nearly two decades, despite the fact that the two regions have traded with each other for over 5,000 years. He said the proposed agreement would mark the beginning of a much stronger and more robust trading relationship.

According to Goyal, the FTA is expected to enable the freer flow of goods and services, bring greater predictability and stability to trade policy, and encourage a higher level of investment flows. He added that the agreement would help elevate bilateral relations between India and the GCC to a new level.

Food processing, infrastructure, petrochemicals, and Information and Communications Technology are some of the many sectors that will benefit hugely from the India-Gulf Cooperation Council (GCC) FTA. The India-Gulf Cooperation Council (GCC) FTA will become a force multiplier for global good, Goyal said.

The move comes as India continues to pursue an active trade agenda, following recent free trade agreements with key partners and ongoing efforts to deepen economic engagement with major global economies. - TradeArabia News Service