The India-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) is a pact between India and the six GCC member states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The agreement aims to foster stronger economic ties between India and the GCC countries, bringing about a significant boost in bilateral trade and investment.
The FTA negotiations between India and GCC began in 2004, and after several rounds of talks, the two sides finalized the agreement in 2019. The FTA is expected to deepen the economic engagement between the two regions, which already have strong historical and cultural ties.
Under the FTA, India and the GCC countries have agreed to eliminate or reduce customs duties on a range of goods, including agricultural products, textile goods, machinery, and chemicals. In addition, the agreement includes provisions for the protection of intellectual property rights, investment promotion, and cooperation in areas such as tourism, transport, and energy.
The FTA has the potential to significantly boost trade and investment between India and the GCC countries. Currently, India`s trade with the GCC stands at around $121 billion, making the GCC India`s second-largest trading partner after China. Under the FTA, this figure is expected to rise to $200 billion by 2030.
One of the key benefits of the FTA is that it will help diversify India`s trade beyond the traditional markets of the US and Europe. The GCC countries are a significant market for Indian goods and services, and the FTA will provide Indian businesses with a competitive advantage in these markets.
The FTA is also expected to promote job creation and economic growth in both India and the GCC countries. By reducing trade barriers and increasing market access, the FTA will encourage businesses to invest in new markets, leading to the creation of new jobs and the growth of industries.
In conclusion, the India-GCC Free Trade Agreement is a significant milestone in the economic relationship between India and the GCC countries. By removing trade barriers and promoting investment, the FTA has the potential to deepen economic ties between the two regions, and provide a boost to trade, investment, and job creation.