New Delhi: India and the Gulf Cooperation Council have agreed on the terms needed to formally begin talks on a long awaited free trade agreement, marking an important step toward deeper economic ties between the two sides.
The agreementclears the way for negotiations between India and the six member countries of the Gulf Cooperation Council, which include Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain. Indian officials said the signing of the terms of reference provides a clear framework for discussions on trade in goods, services and investment.
India’s Commerce and Industry Minister said the move reflects the growing importance of the Gulf region as a major trade and strategic partner. Trade between India and the GCC has expanded steadily in recent years, driven largely by energy imports, exports of Indian goods and strong people to people links.
According to government sources, the proposed free trade pact aims to reduce or remove tariffs on a wide range of products and improve market access for businesses on both sides. It is also expected to cover areas such as services, digital trade and investment cooperation.
The talks had been under discussion for many years but had not progressed beyond the planning stage. Officials said the current global economic situation and India’s broader push to secure new trade agreements have added urgency to the process.
India has recently stepped up efforts to conclude trade deals with key partners around the world, seeing them as vital for boosting exports, creating jobs and strengthening supply chains. The GCC countries, which supply a large share of India’s oil and gas needs, are seen as especially important to this strategy.
Negotiations are expected to begin in the coming months. While no timeline has been officially announced, officials indicated that both sides are keen to move quickly toward a comprehensive agreement that benefits businesses and consumers alike.