GCC FDI in India exceeded $31.14bn as on Sept 2025
Negotiations for the India-GCC Free Trade Agreement (FTA) began on 24 Feb in New Delhi, aiming for a comprehensive and mutually beneficial pact to unlock and expand trade, the Ministry of Commerce and Industry said https://www.commerce.gov.in/.
The GCC is India’s largest trading partner bloc with bilateral trade reaching US$178.56 billion (Exports: US$56.87 billion; Imports: US$121.68 billion) in FY 2024-25, accounting for 15.42% of India’s global trade. In the last five years, India’s trade with the GCC has expanded steadily, registering an annual average growth rate of 15.3 per cent.
Key exports from India to GCC include engineering goods, rice, textiles, machinery, gems and jewelry. Key sectors of imports from GCC primarily comprise crude oil, LNG, petrochemicals, and precious metals such as gold. Collectively, the GCC countries represent a market of 61.5 million people (2024) and US$2.3 trillion in terms of GDP at current prices, ranking 9th globally in this category https://fieo.org/.
The GCC region is also a significant source of FDI for India, with cumulative investments exceeding US$31.14 billion as on September 2025.
The GCC is also home to nearly 10 million members of the Indian community acting as a living bridge between both countries. These strong and enduring people-to-people connections form the foundation of the relationship between India and GCC countries, which is further reinforced by the substantial presence of Indian companies across the region https://www.nseindia.com/.
The FTA negotiations were formally launched by Commerce and Industry Ministry Piyush Goyal and Jasem Mohamed Albudaiwi, Secretary General of the Gulf Cooperation Council on 24 Feb.
Goyal emphasized that the FTA Statement along with the Terms of Reference (ToR) for FTA, which were signed on 5 Feb 2026, mark a significant milestone in the relationship between India and GCC countries https://www.bseindia.com/.
He underscored that the relationship which is deeply rooted in shared history and cultural linkages, would get further impetus from a broad-based and mutually beneficial FTA https://sbi.com.in/.
Albudaiwi emphasized that the FTA will serve as an important tool to further strengthen trade and investment ties between India and GCC countries by infusing predictability and certainty for businesses. Fiinews.com
