India and GCC revitalize economic partnership: Resuming Free Trade Agreement negotiations
financialexpress.comAhead of Prime Minister Narendra Modi’s visit to the UAE later this week, India’s engagement with the Gulf Cooperation Council (GCC) has gained momentum as discussions on the Free Trade Agreement (FTA) between the two parties resume.
Dr Ausaf Sayeed, Secretary (CPV&OIA), Ministry of External Affairs, highlighted the positive development during the 6th India Arab Partnership Conference and said that preliminary documents have been exchanged, and delegations have been meeting, indicating a promising path towards the FTA’s realization. This renewed engagement holds the potential to unlock new opportunities for businesses on both sides.
In addition to the FTA, alternative trading forms are being considered between India and GCC nations. Dr Sayeed mentioned discussions on Rupee trading, barter trading, and other options, especially given the challenges faced by many countries in dealing with foreign currency. This exploration of innovative trading mechanisms reflects a proactive approach in adapting to evolving economic circumstances.
Building upon the progress made, last year in November, India and the GCC countries expressed their commitment to pursuing a FTA and resumed negotiations. Initially scheduled for March 2023, these discussions marked a significant step forward in strengthening economic ties between the regions.
The GCC, comprising Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, stands as India’s largest trading bloc. In the fiscal year 2021-22, India’s exports to the GCC member countries witnessed a substantial increase of 58.26 percent, reaching approximately $44 billion compared to $27.8 billion in the previous year, as reported by the Commerce Ministry.
The bilateral trade in goods also demonstrated
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