India and the six-member Gulf Cooperation Council (GCC) have mutually settled on the structure to initiate talks on a free and all-inclusive free trade agreement (FTA), Union Commerce and Industry Minister Piyush Goyal stated on Thursday. This was formalised when the Terms of Reference (ToR) were signed and it signified an important move towards more economic intercourse between the Gulf region and India.
GCC consists of the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bahrain, Oman. As suggested by Goyal, the new trade deal is likely to establish a stronger and smooth flow of products and services across the two boundaries as well as enhance bilateral investments. He termed the structure as a robust and visionary alliance that had the ability to open up new business opportunities in industries.
The declaration follows soon after India has signed a free trade agreement with the European Union and a trade agreement with the United States, highlighting an intensified effort of New Delhi to enhance its presence in the international trade. Another area that Gladwell also noted is that the potential FTA with the GCC would also help India to diversify its energy sources and this has been noted amidst the current global trade trends.
His commentary is amidst the allegations by the former US President Donald Trump that India would lessen its reliance on Russia because of the India-US trade agreement. An official change by Indian authorities has not yet been officially verified, however.
The decision of India to join GCC is also indicative of the larger policy that New Delhi has of strengthening economic relations with other important partners in the world. It is also the follow up of the recent visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to India where he held a meeting with Prime Minister Narendra Modi. Though the visit was conclusive, the two rulers have examined the entire scope of bilateral co-operation, which has strengthened the rising strategic and economic relationship between India and the Gulf countries.
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