India UAE Relations: Union Commerce Minister Piyush Goyal has said that talks on the Free Trade Agreement (FTA) between India and the Gulf Cooperation Council (GCC) will resume.

Union Commerce Minister Piyush Goyal

India UAE Relations:  Union Commerce Minister Piyush Goyal made a major announcement on Thursday, stating that negotiations for a free trade agreement (FTA) between India and the Gulf Cooperation Council (GCC) are set to resume. This decision comes at a time when India has recently reached significant trade agreements with the European Union (EU) and the United Arab Emirates (UAE).

The GCC is a group of six Gulf countries, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain. Piyush Goyal stated that trade relations between India and these countries date back approximately 5,000 years. Currently, approximately 10 million Indians live in these countries and contribute significantly to their economies. The proposed agreement aims to facilitate the exchange of goods and services, increase investment, and provide policy stability.

The Pakistan-Saudi defense agreement also has an impact.

The resumption of talks between India and the GCC comes at a time when regional politics remains highly sensitive. In September 2025, Saudi Arabia and Pakistan signed a Strategic Mutual Defense Agreement (SMDA). This agreement came a few months after the military tensions between India and Pakistan in May 2025, known as Operation Sindoor. It is worth noting that in April 2025, India took action against terrorist bases in Pakistan in response to the terrorist attack in Pahalgam .

Relations between UAE and Pakistan sour

While relations between Pakistan and Saudi Arabia are strengthening, tensions are emerging between the UAE and Pakistan. Shortly after UAE President Sheikh Mohammed bin Zayed Al Nahyan's visit to India, the UAE canceled a major agreement with Pakistan.

According to a report in the Pakistani newspaper Express Tribune, the deal to manage Islamabad International Airport was put on hold because Pakistan failed to finalize a local partner. Sources stated that the Pakistani side sent a final letter seeking a clear response, but the UAE stated that it had not yet been able to confirm a nominated company. It is reported that the rift between the UAE and Pakistan began growing after Pakistan's defense agreement with Saudi Arabia.

Growing closeness between India and UAE

UAE President Sheikh Mohammed bin Zayed Al Nahyan's recent visit to Delhi elevated relations between India and the UAE. Hours after his brief but significant visit, the two countries resolved to double their mutual trade to $200 billion by 2032. The UAE and Saudi Arabia are India's largest trading partners among Gulf countries. Experts believe that Pakistan's growing closeness with Saudi Arabia, on the one hand, and the UAE's strengthening ties with India, on the other, indicate a shifting priority in Gulf countries.