India’s Growing Bundle of Free Trade Agreements to Enhance Economy
By Megha Bajaj
India and the six-nation bloc of Middle Eastern nations, the Gulf Cooperation Council (GCC), signed the terms of reference on Thursday for starting talks for a Free Trade Agreement (FTA). Notably, the terms of reference (ToR) highlighted the scope and modalities of a proposed trade pact. Interestingly, Commerce and Industry Minister Piyush Goyal presided over the signing ceremony of the ToRs with GCC. Evidently, GCC is a union of six countries in the Gulf region that are Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. Minister Goyal said that the agreement will help boost bilateral trade and investments between the two. Moreover, he added that about 10 million Indians are living and working in the GCC region.
India’s Free Trade Agreement with the UAE and Oman
Interestingly, India has already implemented a free trade agreement with the UAE in May 2022. India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025. The Launch of Free Trade Agreement (FTA) talks with the GCC would be a kind of resumption of the negotiations, as the earlier two rounds of negotiations were held in 2006 and 2008 between the two regions. Surprisingly, the third round did not happen as GCC postponed its negotiations with all countries and economic groups.
India’s exports to the GCC, apart from the Free Trade Agreement
India imports predominantly crude oil and natural gas from the Gulf nations such as Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals to these countries. India’s exports to the GCC surged by about one per cent to about USD 57 billion in 2024-25 against USD 56.32 billion in 2023-24. Not only this, but Imports also rose by 15.33 per cent to USD 121.7 billion in 2024-25 from USD 105.5 billion in 2023-24. Bilateral trade has risen to USD 178.7 billion in 2024-25 from USD 161.82 billion in 2023-24. The UAE was India’s third-largest trading partner in the last fiscal year.
India’s exports to the nation stood at USD 36.63 billion, whereas the imports were USD 63.40 billion in the last fiscal, resulting in a trade deficit of USD 26.76 billion in 2024-25. Saudi Arabia was India’s fifth-largest trading partner during the last fiscal. Exports to the kingdom were USD 11.75 billion, whereas the imports were around USD 30.12 billion, leading to a trade deficit of USD 18.36 billion in 2024-25. Qatar ranked as India’s 22nd-largest trading partner last fiscal. Exports stood at USD 1.68 billion, while imports were USD 12.46 billion, leaving a trade deficit of USD 10.78 billion in 2024-25. India mainly imports liquefied natural gas (LNG) from Qatar, while exporting products ranging from cereals to meat, fish, chemicals and plastics. Notably, Oman was the 28th largest trading partner of India in 2024-25. Exports stood at USD 4 billion, while imports aggregated to USD 6.54 billion. The trade deficit was 2.48 billion. Kuwait ranked 29th among India’s trading partners in 2024-25. Exports stood at USD 1.93 billion, while imports were USD 8.28 billion, leading to a trade deficit of USD 6.35 billion. Likewise, India’s outbound shipments to Bahrain, which is the 65th largest trading partner of India, were USD 797.47 million in the last fiscal. Imports were USD 843.44 million, leaving a trade deficit of USD 45.97 million in 2024-25.
India’s FTA with the UK and New Zealand
The India-UK Free Trade Agreement, signed on July 24, 2025, marks a significant milestone in bilateral relations, intended at doubling trade to $100 billion by 2030. The deal secures duty-free access for 99% of Indian exports, particularly in textiles and leather, while decreasing tariffs on UK goods such as Scotch whisky and automobiles. Additionally India and New Zealand concluded a Free Trade Agreement (FTA) on Monday, December 22, 2025. PM Narendra Modi held a telephonic conversation with his New Zealand counterpart, Christopher Luxon, during which the two leaders jointly announced the conclusion of what they described as a historic, ambitious, and mutually beneficial Free Trade Agreement (FTA). Under this Free Trade Agreement (FTA), New Zealand will discard tariffs on 100 per cent of its tariff lines, granting duty-free market access for all Indian exports. It’s a move expected to significantly enhance India’s export competitiveness and improve its integration into global value chains.