India, Gulf bloc discuss next steps on free trade agreement

India has reviewed the negotiations on a free trade agreement with the Gulf Cooperation Council (GCC), as the country’s ambassador to Saudi Arabia, Vipul, held wide-ranging talks with the secretary general of the six-nation bloc, Jasem Mohamed Albudaiwi, in Riyadh.

The meeting took place on Sunday, where both sides discussed ways to strengthen India-GCC relations, exchanged views on regional and international developments, and reviewed preparations for a ministerial meeting scheduled next month, the GCC Secretariat said in a statement.

The meeting assumes significance as India and the GCC resumed negotiations in February for a comprehensive trade agreement aimed at boosting bilateral trade and investment, even though the talks were temporarily stalled in June because of the West Asia crisis. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates and was established in 1981 as a political, economic and security grouping.

During Sunday’s meeting, India and the GCC also affirmed the importance of continued coordination and consultations on issues of common interest to contribute to regional security and stability, the GCC statement said.

“Both discussed India-GCC cooperation, including FTA negotiations and strengthening high-level engagements. They also exchanged views on regional and global developments of mutual interest,” the Indian Embassy in Riyadh said in a post on X.

The GCC is India’s largest trading partner bloc, with bilateral trade reaching $178.56 billion in 2024-25, accounting for 15.42 per cent of India’s global trade, according to official data. India’s exports to the GCC stood at about $56.87 billion during the period, while imports were valued at $121.68 billion.

Key Indian exports include engineering goods, rice, textiles, machinery, gems and jewellery, while imports are dominated by crude oil, LNG, petrochemicals and gold.

The GCC countries are also a major source of investment for India, with cumulative investments exceeding $31.14 billion as of September 2025. The region, a major source of remittances, is home to nearly 10 million members of the Indian community.

The latest negotiations mark a resumption of talks that were held in 2006 and 2008, before the GCC deferred discussions on free trade agreements with countries and economic groupings. Meanwhile, India has already implemented a trade pact with the UAE and signed a Comprehensive Economic Partnership Agreement with Oman.