Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution and Textiles, Government of India, and His Excellency Dr. Nayef Falah M. Al-Hajraf, Secretary General, Gulf Cooperation Council (GCC), announced the intent to pursue Free Trade Agreement (FTA) negotiations between India and GCC.
With forward-looking and solution-oriented deliberations, bilateral engagements witnessed significant progress on all matters of mutual interest across the entire gamut of bilateral economic relations between India and the GCC nations.
Both sides agreed to expedite conclusion of the requisite legal and technical requirements for formal resumption of the FTA negotiations. The FTA is envisaged to be a modern, comprehensive Agreement with substantial coverage of goods and services. Both sides emphasized that the FTA will create new jobs, raise living standards, and provide wider social and economic opportunities in India and all the GCC countries. Both sides agreed to significantly expand and diversify the trade basket in line with the enormous potential that exists on account of the complementary business and economic ecosystems of India and the GCC.
It may be noted that the GCC is currently India’s largest trading partner bloc with bilateral trade in FY 2021-22 valued at over $154 billion with exports valued at approximately $44 billion and imports of around $110 billion (non-oil exports of $33.8 Billion and non-oil imports of $37.2 Billion). Bilateral trade in services between India and the GCC was valued at around $14 billion in FY 2021-22, with exports valued at $5.5 Billion and imports at $8.3 Billion.
GCC countries contribute almost 35% of India’s oil imports and 70% of gas imports. India’s overall crude oil imports from the GCC in 2021-22 were about $48 billion, while LNG and LPG imports in 2021-22 were about $21 billion. Investments from the GCC in India are currently valued at over $18 billion.