Diplomatic Review in Riyadh

India has reviewed the negotiations on a free trade agreement with the Gulf Cooperation Council (GCC), as the country's ambassador to Saudi Arabia, Vipul, held wide-ranging talks with the secretary general of the six-nation bloc, Jasem Mohamed Albudaiwi, in Riyadh. The meeting took place on Sunday, August 23, 2026, according to reports from The Economic Times, The Hindu Business Line, and The Hindu – World.

The GCC Secretariat said in a statement that both sides discussed ways to strengthen India-GCC relations, exchanged views on regional and international developments, and reviewed preparations for a ministerial meeting scheduled for next month. During the meeting, India and the GCC also affirmed the importance of continued coordination and consultations on issues of common interest to contribute to regional security and stability.

The Indian Embassy in Riyadh posted on X: "Both discussed India-GCC cooperation, including FTA negotiations and strengthening high-level engagements. They also exchanged views on regional and global developments of mutual interest."

Background to the Negotiations

The meeting assumes significance as India and the GCC resumed negotiations in February for a comprehensive trade agreement aimed at boosting bilateral trade and investment, even though the talks were temporarily stalled in June because of the West Asia crisis, as reported by The Hindu Business Line and The Economic Times.

The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, and was established in 1981 as a political, economic and security grouping. Talks between India and the GCC on a free trade agreement were previously held in 2006 and 2008, before the GCC deferred discussions on such agreements, according to official data cited by the reports.

Trade and Investment Ties

The GCC is India's largest trading partner bloc, with bilateral trade reaching $178.56 billion in 2024-25, accounting for 15.42 per cent of India's global trade, according to official data. India's exports to the GCC stood at about $56.87 billion during the period, while imports were valued at $121.68 billion.

Key Indian exports include engineering goods, rice, textiles, machinery, gems and jewellery, while imports are dominated by crude oil, LNG, petrochemicals and gold. The GCC countries are also a major source of investment for India, with cumulative investments exceeding $31.14 billion as of September 2025, according to official data.

The region is home to nearly 10 million members of the Indian community and is a major source of remittances for India, the reports noted.

India has already implemented a trade pact with the UAE and signed a Comprehensive Economic Partnership Agreement with Oman, reflecting a broader strategy of deepening economic ties with individual Gulf states alongside the bloc-level negotiations.