- Why in news
- On 24 February 2026 in New Delhi, India and the Gulf Cooperation Council signed a Joint Statement formally launching negotiations for an India-GCC Free Trade Agreement. The Terms of Reference had been signed on 5 February 2026.
- What it is
- The Gulf Cooperation Council is a bloc of six Arab states of the Persian Gulf, formed in 1981, with its Secretariat General in Riyadh. An India-GCC FTA would cover trade in goods, services and investment between India and the bloc as a whole. The GCC is India's largest trading partner bloc.
- Signing
- The Joint Statement was signed by Commerce Minister Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi in New Delhi on 24 February 2026, launching negotiations.
- Trade size
- The GCC is India's largest trading partner bloc. Trade was USD 178.56 billion in FY 2024-25, with exports of USD 56.87 billion and imports of USD 121.68 billion, giving India a large deficit.
- Trade basket
- India exports engineering goods, rice, textiles, machinery, and gems and jewellery. It imports crude oil, LNG, petrochemicals and precious metals such as gold.
- GCC market
- The GCC has 61.5 million people and a GDP of USD 2.3 trillion at current prices, ranking 9th globally.
- Members and HQ
- The GCC has six members: Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain. It was set up in 1981 and is headquartered in Riyadh.
- FDI and diaspora
- Cumulative GCC investment in India exceeded USD 31.14 billion by September 2025. Nearly ten million Indians live in the GCC.
- Purpose of ToR
- The Terms of Reference define the scope and modalities of the India–GCC FTA negotiations.
- Investment
- GCC cumulative FDI in India exceeded USD 31.14 billion as of September 2025.
- GCC membership
- GCC has six members: Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain. It was founded in 1981 and is headquartered in Riyadh.
Don’t confuse with India-UAE CEPA vs India-GCC FTA: The India-UAE CEPA is a bilateral pact with one GCC member. The India-GCC FTA is being negotiated with the six-member bloc as a whole.
Don’t confuse with GCC vs OPEC: The GCC is a regional political and economic bloc of six Gulf states. OPEC is an oil-producing countries' group with a wider membership.
Don’t confuse with GCC vs Arab League: GCC is a six-member Gulf bloc formed in 1981. The Arab League is a much larger body of Arab states, formed in 1945.
Don’t confuse with ToR vs FTA: The ToR only start and frame negotiations. The FTA itself is the final trade agreement and is not yet concluded.
International bodies and relations: the largest group of news questions in Prelims (61 since 2013), often about background, members and location. In Mains, 27 news-triggered questions, mostly on India's interests.
Why it matters
- Gives India predictable, preferential access to its largest trading partner bloc and helps diversify exports.
- Supports energy security and protects remittance and investment ties with a region hosting about ten million Indians.
- The GCC is a major trade partner, at about 15% of India's global trade, so an FTA gives predictability.
- It can support energy and food security, investment inflows and jobs for the large Indian diaspora.
Problems
- India runs a large trade deficit with the GCC, as imports of USD 121.68 billion far exceed exports of USD 56.87 billion.
- Heavy dependence on oil and gas imports, and differing interests among six member states, may complicate negotiations.
- India runs a large trade deficit with the GCC because of crude oil and LNG imports.
- Negotiating with a bloc of six states means reconciling different interests, such as tariffs and services access.
Way forward
- Seek market access for Indian services, engineering goods and agri-products while safeguarding sensitive sectors.
- Use the Terms of Reference to conclude talks in phases, building on bilateral pacts such as the India-UAE CEPA.
- Seek market access for Indian goods and services while widening the export basket beyond engineering goods, rice and textiles.
- Conclude negotiations in phases, with provisions on investment and mobility of professionals.
Put in your answer
India-GCC trade: Bilateral trade of USD 178.56 billion in FY 2024-25 was 15.42% of India's global trade.
GCC as FDI source: Cumulative GCC investment in India crossed USD 31.14 billion by September 2025.
India–GCC trade 2024-25: Trade of USD 178.56 billion, about 15.42% of India's global trade.
GCC FDI: Cumulative GCC investment in India exceeded USD 31.14 billion by September 2025.
Indian diaspora: Nearly ten million members of the Indian community live in the GCC.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The Gulf Cooperation Council has six member states, including Saudi Arabia, Qatar and Oman.
True. GCC members: Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain.
2.The Secretariat General of the GCC is headquartered in Riyadh.
True. GCC's Secretariat General is in Riyadh, Saudi Arabia.
3.Iran and Iraq are members of the Gulf Cooperation Council.
False. Neither Iran nor Iraq is a GCC member; the members are Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain.
4.In FY 2024-25, India's exports to the GCC were larger than its imports from the GCC.
False. Imports (USD 121.68 billion) were far larger than exports (USD 56.87 billion).
5.Crude oil, LNG and petrochemicals are among the key imports of India from the GCC.
True. Key imports from GCC are crude oil, LNG, petrochemicals and precious metals such as gold.
6.GCC countries together rank 9th globally in GDP at current prices.
True. The release gives the GCC a 9th global rank with USD 2.3 trillion GDP.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.