India-GCC Free Trade Agreement (FTA)
India and the Gulf Cooperation Council (GCC) have signed a joint statement to commence negotiations for an FTA aimed at a comprehensive and beneficial agreement. The GCC includes Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain.
- Trade Significance:
- GCC is India’s largest trading bloc, with bilateral trade reaching $178.56 billion in FY25.
- This trade accounts for 15.42% of India’s global trade.
- Key Areas of Collaboration:
- Trade in goods and services
- Customs procedures
- Digital trade and cutting-edge technologies
- Investment flows
- Foreign Direct Investment (FDI):
- GCC is a significant FDI source for India, with investments over $31.14 billion as of September 2025.
India-Israel Free Trade Agreement (FTA)
The first round of negotiations for an FTA with Israel is scheduled from February 23-26. Discussions will cover various trade and cooperation areas.
- Negotiation Areas:
- Trade in goods and services
- Rules of origin and customs procedures
- Sanitary and phytosanitary measures
- Technical barriers to trade
- Intellectual property rights
- Economic Cooperation:
- Total merchandise trade between India and Israel was $3.62 billion in FY25.
- The FTA aims to enhance predictability and certainty in bilateral trade, benefiting sectors like MSMEs.
- Opportunities:
- Areas of cooperation include innovation, science and technology, artificial intelligence, cybersecurity, and agriculture.
