India and the Gulf Cooperation Council (GCC) signed the Terms of Reference (ToR) to begin formal talks on a Free Trade Agreement (FTA).
The ToR sets the scope and framework for how the FTA negotiations will proceed.
Who Are the GCC Members
The Gulf Cooperation Council (GCC) includes six countries: Saudi Arabia, United Arab Emirates (UAE), Qatar, Kuwait, Oman & Bahrain
Why This Is Important-
Restarting Long-Stalled Talks
Talks for an India-GCC FTA were first explored more than two decades ago.
Earlier negotiations were held in 2006 and 2008 but then paused.
Signing the ToR restarts the process and formally begins the negotiation phase.
Boosting Trade and Investments
The FTA is expected to strengthen economic and strategic ties between India and the Gulf region.
It can increase trade, investment, and cooperation in sectors like food processing, infrastructure, petrochemicals, and technology.
Economic Significance
Strong Trade Relations
India-GCC bilateral trade was around $178.56 billion in 2024-25.
India mainly imports crude oil and gas from the GCC, and exports goods like metals, machinery, and gems to the region.
Large Indian Diaspora
About 10 million Indians live and work in GCC countries, contributing to strong people-to-people and economic bonds.
What This Means Moving Forward
Signing the ToR does not mean the FTA is final; it starts negotiations.
The talks will work out the actual terms of the trade deal, including tariffs, market access, and rules.
If finalized, the FTA could lead to greater growth in trade and investment for both India and the GCC region.
IAS-2026 - OPTIONAL / GEOGRAPHY / PUBLIC ADMINISTRATION / SOCIOLOGY / ANTHROPOLOGY / ORIENTATION ON 03 & 04-10-2025 
