Why in News?
In February 2026, India and the six-nation Gulf Cooperation Council (GCC) signed the Terms of Reference (ToR) to formally launch negotiations for a comprehensive Free Trade Agreement (FTA).
Description:
Key Terms:
- FTA (Free Trade Agreement): A pact to reduce/eliminate tariffs and non-tariff barriers to boost trade in goods and services.
- Terms of Reference (ToR): A negotiated framework defining scope, objectives, and modalities of FTA talks; a mandatory precursor to formal negotiations.
The GCC (Gulf Cooperation Council):
- Established: 1981
- Formed in response to Iranian Revolution & Iran-Iraq War.
- HQ: Riyadh, Saudi Arabia.
- Members (6): Saudi Arabia, UAE, Qatar, Kuwait, Oman, Bahrain.
Trade & Strategic Significance
- Top Partner: GCC is India’s largest merchandise trading partner as a bloc (surpassing EU and US).
- Energy Security: Critical for India’s oil and gas imports.
- Diaspora: Key destination for the Indian workforce; source of high remittances.
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