India FTA negotiations with Israel and GCC paused amid West Asia crisis, Goyal says

India’s free trade agreement talks with Israel and the six-nation GCC bloc are paused for now. Commerce and Industry Minister Piyush Goyal said the halt is linked to the West Asia crisis. Goyal added that India continues to work on several other trade pacts. The comments were made during the India-Greece Business Forum in Athens.

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Talks with Canada are close to completion, Goyal said in Athens. India is also negotiating with Chile and Mexico. Other ongoing discussions cover the South Africa-led SACU group and the Russia-led Eurasia bloc. Negotiations are also continuing on an expanded PTA with Mercosur.

India FTA negotiations and the stalled Israel and GCC talks

Goyal said, "We are currently in negotiations, off course temporarily stalled with Israel, with the six-nation GCC Gulf Cooperation Council bloc, but in active negotiations with Chile, Mexico, SACU South Africa Customs Union, the Eurasia bloc, and an expanded PTA preferential trade agreement with Mercosur,\" he said. The minister described the Israel and GCC pauses as temporary.

The GCC includes Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. Mercosur members are Brazil, Argentina, Uruguay, and Paraguay. The Eurasian Economic Union includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. SACU has South Africa, Namibia, Botswana, Lesotho, and Eswatini.

India FTA negotiations progress across partner blocs

Goyal said India has completed nine FTAs in the last three and a half years. These agreements cover 38 developed and prosperous countries. He listed the UK, EU, EFTA, Mauritius, UAA, Oman, Australia, and New Zealand. Goyal linked the deals to wider export and investment goals.

On February 24, India and Israel began the first negotiation round for an FTA. An official said the goal was to expand trade and support investments. On the same date, India and the GCC announced the start of trade talks. Those negotiations are now stalled, Goyal said.

India FTA negotiations context from India-Greece trade targets

Goyal said India-Greece trade stands at USD 1.3 billion and remains modest. Both countries aim to raise it, with a goal to double by 2030. Goyal pointed to four areas for stronger company links. These were shipping and logistics, clean energy, technology, and processed food.

Clean energy options named were solar, wind, offshore wind, green hydrogen, and nuclear power. Goyal also linked the partnership to India’s export plans. India aims to lift exports to USD one trillion this fiscal. That compares with USD 863 billion in 2025-26.

Goyal said India hopes to reach USD two trillion of exports in five years. Greece’s maritime record was also highlighted. Goyal said Greece controls one-fifth of global shipping capacity. Greece also has a fleet of nearly six thousand vessels.

Goyal said both sides can work in shipbuilding, ship management, maritime finance, and port development. Technology cooperation was also flagged as an option. Goyal pointed to earth observation, satellite applications, and space sciences. The minister said these areas could widen India-Greece commercial engagement.

With inputs from PTI