With strengthened diplomatic and economic engagement, India and Qatar are poised for a new era of cooperation, driving growth and innovation across multiple sectors
India and Qatar have elevated their bilateral relationship to a strategic partnership, strengthening trade, investment, and energy cooperation. The landmark decision was announced during talks between Indian Prime Minister Narendra Modi and Qatar’s Amir Sheikh Tamim bin Hamad Al Thani in New Delhi. Both nations set an ambitious target to double bilateral trade to USD 28 billion over the next five years, while Qatar committed to investing USD 10 billion in India, reported indianexpress.com.
Strengthening Economic Ties
Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), currently holds USD 1.5 billion in Foreign Direct Investment (FDI) in India, spanning sectors such as retail, power, IT, education, healthcare, and affordable housing. The newly pledged investment will focus on infrastructure, ports, ship-building, renewable energy, smart cities, food parks, start-ups, and emerging technologies like artificial intelligence, robotics, and machine learning.
Prime Minister Modi took to social media platform X to express his enthusiasm about the strengthened partnership, stating, “Had a very productive meeting with my brother, Amir of Qatar H.H. Sheikh Tamim bin Hamad Al Thani, earlier today. Under his leadership, Qatar has scaled new heights of progress. He is also committed to a strong India-Qatar friendship. This visit is even more special because we have elevated our ties to a Strategic Partnership.”
Expanding Trade Relations
Bilateral trade between India and Qatar stands at approximately USD 14 billion annually. As part of their strategic partnership, both countries aim to double this figure by 2030. The two leaders also discussed the potential for a Free Trade Agreement (FTA), which could further facilitate trade and economic growth.
Energy Cooperation
Energy remains a cornerstone of India-Qatar relations, with Qatar being a key supplier of Liquefied Natural Gas (LNG) to India. In February 2024, Qatar Energy and Petronet LNG Limited signed a long-term agreement for the supply of 7.5 million metric tonnes per annum of LNG to India for 20 years, beginning in 2028. This agreement underscores Qatar’s role as a crucial energy partner in India’s economic and industrial development.
Agreements and MoUs
During Sheikh Al Thani’s second official visit to India, both countries signed two agreements and five Memoranda of Understanding (MoUs). These covered economic cooperation, youth affairs, and a double taxation avoidance agreement, further solidifying the foundation for enhanced bilateral engagement.
Qatar Joins India’s GCC Strategic Partners
With this agreement, Qatar joins the ranks of UAE, Saudi Arabia, Oman, and Kuwait as India’s strategic partners within the Gulf Cooperation Council (GCC). This development strengthens India’s diplomatic and economic footprint in the region.
A Vision for the Future
Speaking on the deepening ties, Arun Chatterjee, Secretary in India’s Ministry of External Affairs, emphasized that trade, investment, and energy were the key focus areas of the discussions. He highlighted Qatar’s growing interest in India’s evolving economic landscape, particularly in advanced technologies and sustainable development.
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