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Context: India and the Gulf Cooperation Council (GCC) member countries are expected to start negotiations for a free trade agreement with an aim to boost economic ties between the two regions.

Details:

• India has already implemented a free trade pact with the UAE in May this year.
• According to experts, the GCC region holds huge trade potential and a trade agreement would help in further boosting India’s exports to that market.
• GCC market is unexploited by domestic exporters and it holds huge potential
• GCC is a major import dependent region. We can increase our exports of food items, clothing and several other goods. Duty concessions under a trade agreement will help in tapping that market. It will be a win-win situation for both sides.
• Sectors such as chemicals, textiles, gems and jewellery and leather will get a major impetus by this agreement
• India imports predominately crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar.
• In 2006 and 2008, both sides had negotiated a tradepact, but that had come to a standstill due to some reasons.
• GCC member countries grew 58.26% to about $44 billion in 2021-22 as against $27.8 billion in 2020-21, according to data from the commerce ministry. Bilateral trade in goods increased to $154.73 billion in 2021-22 from $87.4 billion in 2020-21.
• Services trade between the two regions was valued at around $14 billion in 2021-22, with exports aggregated at $5.5 billion and imports at $8.3 billion. GCC countries contribute almost 35% of India's oil and 70% of its gas imports.

About GCC:

• The Cooperation Council for the Arab States of the Gulf, also known as the Gulf Cooperation Council (GCC) is a regional, intergovernmental, political, and economic union comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
• The council's main headquarters is located in Riyadh, Saudi Arabia.
• The Charter of the GCC was signed on 25 May 1981, formally establishing the institution.

https://economictimes.indiatimes.com/news/economy/foreign-trade/india-and-gcc-resume-free-trade-agreement-talks-piyush-goyal/articleshow/95746975.cms

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