India, Feb. 5 -- India and the six-nation Gulf Cooperation Council have agreed on terms to start negotiations for a free trade agreement, union minister Piyush Goyal said on Thursday. The development comes days after India finalised a free trade pact with the European Union (EU) and sealed a trade deal with the United States.

Apart from the UAE and Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman are part of the GCC. Goyal made the announcement as India and the Gulf nations bloc signed the Terms of Reference (ToR). Goyal said that the "robust" trading arrangement would enable a greater free flow of goods and services, and will encourage more investments.

He reportedly also said that the free trade pact with the GCC would help with the div...