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India–GCC Terms of Reference for FTA Negotiations

6 February 20261 min read
INTERNATIONAL AFFAIRSIndia–GCC Termsof Reference forFTA Negotiations6 February 2026safalsetu.com

Why in the news

India and the Gulf Cooperation Council (GCC) agreed on the Terms of Reference that formally open negotiations for a Free Trade Agreement.

Key facts

  • Document signed: Terms of Reference (ToR) for FTA talks.
  • Parties: India and the Gulf Cooperation Council.
  • Trade position: the GCC is India’s largest bloc partner in merchandise trade.

Aims of the proposed FTA

  • Stronger trade and investment links.
  • Energy cooperation.
  • Supply-chain integration with West Asia.

Exam angle

  • Know the step reached: ToR signed, so negotiations are only beginning and no FTA exists yet.
  • Likely question: the GCC’s rank as a trade partner bloc for India.
  • Related terms: FTA, merchandise trade, West Asia.

Test yourself

1. What did India and the GCC sign to formally launch FTA negotiations?

They signed Terms of Reference, not the FTA itself.

2. India's largest merchandise trade partner bloc is which grouping?

The notes call the GCC India's largest merchandise trade partner bloc.

3. The India–GCC FTA aims to integrate supply chains with which region?

The proposed FTA targets supply-chain integration with West Asia.