India Moves to Strengthen GCC Trade Relations
Union Commerce and Industries Minister Piyush Goyal announced on Thursday that India will restart talks for a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC). This comes shortly after India signed major trade deals with the European Union and the United States. The GCC includes Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain. Saudi Arabia and the UAE are India’s largest trading partners in the region.
Goyal said the FTA will boost trade, encourage investments, and create a predictable policy environment. With over 10 million Indians living in the GCC, the deal is expected to strengthen economic and people-to-people ties.
GCC FTA: Boosting Trade and Investment
The minister added that the FTA will reinforce thousands of years of trade relations. “It is time to enter a stronger trading arrangement,” Goyal said. The deal will help industries like energy, technology, healthcare, and services. Small and medium enterprises in India will also get new opportunities. Experts say the FTA could significantly increase bilateral trade and strengthen India’s economic position in the Gulf.
Pakistan-Saudi Strategic Pact in Focus
The restart of talks comes after Saudi Arabia renewed its strategic partnership with Pakistan through the Strategic Mutual Defence Agreement (SMDA) in September 2025. This followed the Operation Sindoor standoff between India and Pakistan. The backdrop adds a geopolitical layer to India’s talks with the GCC, especially as Saudi Arabia balances its relations with both India and Pakistan.
UAE Relations: Strengthening Ties with India
Meanwhile, UAE-Pakistan relations have weakened, especially after Islamabad aligned strategically with Saudi Arabia. The UAE also scrapped a deal for managing Islamabad International Airport due to a lack of a local partner.
In contrast, India-UAE ties are growing fast. After President Sheikh Mohamed bin Zayed Al Nahyan’s visit to New Delhi, both nations agreed to boost cooperation. They aim to double bilateral trade to US$200 billion by 2032, marking India as a key economic partner in the Gulf.
