Commerce Minister Piyush Goyal announced that India and the GCC have agreed to begin fresh negotiations on a free trade agreement. (Image: @piyushgoyal/X)
Explainers
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News1806-02-2026, 11:57

India's Big Gulf Push: Trade Deal With Six Arab Nations May Worry Pakistan

  • India and the Gulf Cooperation Council (GCC) have formally signed the Terms of Reference (ToR) to resume negotiations for a free trade agreement (FTA).
  • The GCC comprises Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain, established in 1981 for economic cooperation.
  • India's engagement with the GCC involves significant trade, energy imports (crude oil, LNG), and nearly ten million Indian expatriates.
  • Bilateral trade between India and the GCC reached $178.7 billion in 2024-25, with the UAE being India's third-largest trading partner.
  • The renewed India-GCC engagement strengthens New Delhi's image as a stable partner, potentially narrowing Pakistan's strategic room in the region.

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