Commerce and Industry Minister Piyush Goyal announced that India's free trade agreement (FTA) negotiations with Israel and the six-nation Gulf Cooperation Council (GCC) bloc have been temporarily stalled due to the ongoing West Asia crisis. The statement was made at the India-Greece Business Forum, according to a report by the Economic Times.
FTA Status Update
"We're currently in negotiations, of course temporarily stalled with Israel, six-nation GCC bloc, but in active negotiations with Chile, Mexico, SACU, Eurasia bloc, expanded PTA with Mercosur, very advanced discussions with Canada," Goyal said.
Officials earlier confirmed that the talks with Israel and the GCC have been stalled due to the West Asia crisis, though no further details were provided on the timeline for resumption.
The following table summarises the current status of India's various FTA negotiations as stated by Goyal:
| FTA Partner | Status |
|---|---|
| Israel | Temporarily stalled |
| GCC (6 nations) | Temporarily stalled |
| Chile | Active negotiations |
| Mexico | Active negotiations |
| Southern African Customs Union (SACU) | Active negotiations |
| Eurasian Economic Union (EAEU) | Active negotiations |
| Mercosur | Expanded PTA negotiations |
| Canada | Very advanced discussions |
| Maldives | Negotiations began Monday (virtual, till July 7) |
Bloc Members
Mercosur bloc members are Brazil, Argentina, Uruguay, and Paraguay. The Eurasian Economic Union (EAEU) comprises Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.
India-Greece Trade
On bilateral trade with Greece, Goyal noted that the current $1.3 billion annual trade volume is low and both sides should work to increase it. He set a target to double bilateral trade by 2030 to approximately $2.6 billion.
Goyal suggested four key areas for collaboration:
- Shipping and logistics – including shipbuilding, ship management, maritime finance, and port development. Greece controls one-fifth of global shipping capacity with a fleet of nearly 6,000 vessels.
- Clean energy – solar, wind, offshore wind, green hydrogen, and nuclear power.
- Technology – earth observation, satellite applications, and space sciences.
- Processed food.
India's Export Target
Goyal underlined India's broader trade ambition: "And in the next five years, we hope to touch $2 trillion of exports," up from $863 billion in FY26. He emphasised Greece's role as a maritime powerhouse, stating "Greece has a history of a great maritime nation, controlling one-fifth of global shipping capacity and a fleet of nearly six thousand vessels."
India-Maldives FTA
Separately, India and the Maldives began FTA negotiations on Monday (the week of May 30, 2026), according to the commerce department. The discussions are being held in virtual mode and will continue until July 7.
For trade professionals, the stalling of talks with Israel and the GCC signals a delay in potential tariff concessions in those markets, but the active pipeline with other partners offers alternative avenues for tariff reduction and market access. The focus on Greece and the maritime sector opens opportunities for shipping and logistics companies, while the clean energy and technology collaborations align with global trends.
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