The terms of reference (ToR) define the scope, rules, and framework of a trade deal.
“The finalisation of the ToRs would be presided by commerce and industry minister Piyush Goyal,” said an official.
The development comes three days after India and the US announced a trade deal wherein Washington slashed the tariffs on India to 18% from 50%. Last week, India and the EU concluded the negotiations for a long-pending FTA.
India has already inked trade pacts with the UAE and Oman in the GCC, and is in negotiations with Qatar for an FTA. Bahrain, Kuwait, and Saudi Arabia are the other GCC members.
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on May 1, 2022. India and Oman signed a CEPA in Muscat on December 18, 2025.
FTA talks between India and the GCC began with the signing of a framework agreement in 2004, followed by two rounds in 2006 and 2008. However, the GCC paused negotiations globally in 2011. Talks resumed after the GCC Secretary General’s visit to India in November 2022. A revised ToR was shared by GCC in October 2023, and both sides have since exchanged updated versions.
In FY25, India-GCC bilateral goods trade reached $178.56 billion with India’s exports at $56.87 billion and imports of $121.66 billion, accounting for 15.42% of India’s global trade. Saudi Arabia is India’s second largest GCC trade partner after the UAE.
India’s key imports from the bloc are crude oil and natural gas while pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals are the top exports.