Why in the News
India and the Gulf Cooperation Council signed a Joint Statement on February 24, 2026 in New Delhi, formally launching negotiations for an India–GCC Free Trade Agreement. The statement was signed by Piyush Goyal and GCC Secretary General Jasem Mohamed Albudaiwi.
About the Gulf Cooperation Council
The GCC is a regional bloc comprising:
- Saudi Arabia
- United Arab Emirates
- Qatar
- Kuwait
- Oman
- Bahrain
- Established in 1981
- Combined GDP about 2.3 trillion dollars
- Population about 61.5 million
Trade Significance
- GCC is India’s largest trading partner bloc.
- Bilateral trade in FY 2024-25: 178.56 billion dollars
- Exports: 56.87 billion dollars
- Imports: 121.68 billion dollars
- Accounts for about 15.42 percent of India’s global trade.
- Average annual trade growth over last five years: 15.3 percent.
Key Trade Items
- India’s Exports to GCC: Engineering goods, Rice, Textiles, Machinery, Gems and jewellery
- India’s Imports from GCC: Crude oil, LNG, Petrochemicals and Gold
Investment and Diaspora Linkages
- GCC investments in India exceed 31.14 billion dollars.
- Nearly 10 million Indians live and work in GCC countries.
- Strong people to people ties support economic cooperation.
Expected Benefits of the FTA
- Greater trade predictability and certainty.
- Diversification of exports.
- Stronger energy security cooperation.
- Enhanced market access for goods and services.
- Deeper economic integration amid global uncertainty.
| [2016] Which of the following is not a member of ‘Gulf Cooperation Council’?
(a) Iran (b) Saudi Arabia (c) Oman (d) Kuwait |
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
