India, Gulf bloc map out next steps on free trade agreement

India has taken stock of ongoing negotiations for a free trade agreement with the Gulf Cooperation Council (GCC) after its ambassador to Saudi Arabia, Vipul, held extensive discussions in Riyadh with the bloc’s secretary general, Jasem Mohamed Albudaiwi.

The meeting was held on Sunday (August 23, 2026). According to a GCC Secretariat statement, the two sides explored ways to deepen India-GCC ties, shared perspectives on regional and international developments, and reviewed arrangements for a ministerial meeting due next month.

The engagement is notable as India and the GCC resumed talks in February on a comprehensive trade agreement intended to expand bilateral trade and investment, even though negotiations were briefly disrupted in June due to the West Asia crisis.

The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, and was formed in 1981 as a political, economic and security alliance.

At Sunday’s (August 23) meeting, India and the GCC also underscored the need for continued coordination and consultations on shared priorities to support 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 remains India’s largest trading partner bloc. Official data show bilateral trade at $178.56 billion in 2024-25, representing 15.42% of India’s total global trade. India exported about $56.87 billion to the GCC during the period, while imports totalled $121.68 billion.

India’s main exports to the region include engineering goods, rice, textiles, machinery, gems and jewellery, while imports are led by crude oil, LNG, petrochemicals and gold.

GCC countries are also significant investors in India, with cumulative investments topping $31.14 billion as of September 2025.

The region is a key source of remittances and hosts nearly 10 million people of Indian origin.

The latest round revives a dialogue that previously took place in 2006 and 2008, before the GCC put on hold FTA discussions with countries and economic groupings.

India, meanwhile, has already put into force a trade agreement with the UAE and has signed a Comprehensive Economic Partnership Agreement with Oman.