India, Gulf Cooperation Council to launch free trade pact negotiations on November 24

India's exports to the GCC member countries grew by 58.26% to about $44 billion in 2021-22, as against $27.8 billion in 2020-21, according to data from the Commerce Ministry.

India and the Gulf Cooperation Council (GCC) will announce the launch of negotiations for a free trade agreement on November 24, which aims at promoting two-way commerce and investments between the regions, an official said.

GCC is a union of six countries in the Gulf region — Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. India's exports to the GCC member countries grew by 58.26% to about $44 billion in 2021-22, as against $27.8 billion in 2020-21, according to data from the Commerce Ministry.

The share of GCC members in India's total imports rose to 18% in 2021-22, from 15.5% in 2020-21.

Bilateral trade has increased to $154.73 billion in 2021-22, from $87.4 billion in 2020-21. "GCC officials will be here for the announcement," the official said. India has already implemented a free trade pact with the UAE in May this year.

This would be a kind of resumption of FTA talks as earlier two rounds of negotiations had been held in 2006 and 2008 between India and GCC. Third round did not happen as GCC deferred its negotiations with all countries and economic groups.

India imports predominately crude oil and natural gas from the Gulf nations such as Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones; metals; imitation jewellery; electrical machinery; iron and steel; and chemicals to these countries.