India And GCC Agreed To Pursue Free Trade Agreement Talks: Piyush Goyal

India and the Gulf Cooperation Council (GCC) have decided to restart talks on a free trade agreement (FTA), according to Piyush Goyal, the minister of commerce and industry.

A trade agreement had been negotiated between the two parties between 2006 and 2008, but it had stagnated for a variety of reasons.

At a joint press conference with the GCC secretary-general Nayef Falah M Al-Hajraf, Goyal said, "We have agreed to pursue the free trade agreement between GCC and India and resume the negotiations and conclude the same at the earliest,"

Goyal added that the next round of negotiations would be decided by teams from both sides.

GCC is an association of six Gulf nations, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. India's largest trading group is the council.

According to data from the commerce ministry, India's exports to GCC members increased by 58.26% to nearly $44 billion in 2021–22 from $27.8 billion in 2020–21. From $87.4 billion in 2020–2021 to $154.73 billion in 2021–2022, bilateral trade in products grew. In 2021–22, the value of services traded between the two regions was estimated to be over $14 billion, with $5.5 billion in total exports and $8.3 billion in total imports. Nearly 35% of India's oil imports and 70% of its gas imports come from  GCC countries.

Goyal had announced earlier this month that India would begin talks with a region for an important free trade agreement the next week. Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain make up the GCC. A free trade agreement between India and the UAE was already put into effect in May of this year.

Additionally, trade agreements are being negotiated by India with the UK, EU, Canada, and Israel. The interim trade agreement agreed upon with India was approved by the Australian Parliament earlier.