New Delhi: Giving a boost to their commercial and economic ties, India and Gulf Cooperation Council today (Aug 25, 2004) signed a Framework Agreement on Economic Cooperation to explore the possibility of a Free Trade Area (FTA) between them.

The Agreement was inked in New Delhi by Commerce and Industry Minister Kamal Nath and Mohammed Al-Sabbah Al-Salem Al Sabbah, the visiting Foreign Minister of Kuwait, which chairs the Council.

Nath said the agreement would "act as a catalyst in our efforts to achieve closer commercial, economic and political relationship".

Pointing to India's traditional economic ties with GCC comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates, Nath said the Agreement had elements that would enable both the trading partners to exploit opportunities to the maximum.

Noting that there was considerable untapped potential with regard to trade and investment, he said this Agreement would further strengthen ties.

GCC secretary general Abdulrahm bin Haman Al Attiyah expressed hope that the Framework Agreement would pave the way for starting negotiations on a FTA.