On Tuesday, Feb 18, India and Qatar elevated their relationship to a strategic partnership and committed to doubling bilateral trade to US$ 28 billion over the next five years, following extensive discussions between Prime Minister Narendra Modi and Qatar’s Amir Sheikh Tamim Bin Hamad Al-Thani. Qatar is actively exploring opportunities to expand investments in India across various sectors including infrastructure, technology, manufacturing, food security, logistics, hospitality, and other areas of mutual interest. In this context, Qatar has committed to investing US$ 10 billion in India. Following the bilateral and delegation-level discussions between the two leaders, both nations have signed key agreements including the Double Taxation Avoidance Agreement and a pact to elevate the relations between the two countries to the strategic partnership.
India and Qatar have upgraded their ties to a strategic partnership and committed to doubling their current trade of US$ 14 billion within the next five years. The decision was made during a summit between Prime Minister Narendra Modi and Qatar Amir Sheikh Tamim Bin Hamad Al Thani.
Qatari Amir is on a two-day visit to India, during which he held bilateral talks with Prime Minister Narendra Modi on trade, investment, and energy. This is his second state visit to India. He earlier visited India in March 2015. The Amir is accompanied by a high-level delegation, which includes Qatar’s Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed Bin Abdulrahman Al Thani, as well as several ministers, CEOs of many top Qatari entities such as Qatar Investment Authority and Qatar Tourism.
PM Modi posted on X after the discussions, “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”.
Qatar, a member of the six-nation Gulf Cooperation Council (GCC), has been engaged in FTA discussions with India since 2004. In addition to the trade agreement, Qatar’s Commerce and Industry Minister, Sheikh Faisal bin Thani bin Faisal Al Thani, expressed his country’s willingness to expedite negotiations for a new bilateral investment promotion and protection agreement.
The two sides have agreed to operationalization of India’s UPI at Qatar National Bank (QNB) Point of Sales in Qatar; and expansion of Qatar National Bank presence in India by setting up an office in the GIFT (Gujarat International Finance Tech) City in Gujarat.
Both nations have also signed other key agreements. which include- the Double Taxation Avoidance Agreement, agreements on economic partnership, cooperation in archives and documentation, youth affairs and sports, and a pact to elevate bilateral ties to a strategic partnership. A strategic partnership is expected to bring Qatar at par with the United Arab Emirates (UAE), Saudi Arabia, Oman, and Kuwait, all of which have strategic partnerships with India. (The government is also negotiating a Free Trade Agreement (FTA) with the Gulf Cooperation Council, comprising the six oil-rich economies of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.)
In 2023-24, total trade between India and Qatar was over US$ 14 billion. India’s exports to Qatar stood at US$ 1.7 billion and imports were worth US$ 12.3 billion.
India’s key imports from Qatar include liquefied natural gas (LNG), liquefied petroleum gas (LPG), chemicals, petrochemicals, plastics, and aluminum articles. Meanwhile, India’s exports to Qatar consist of cereals, copper, iron and steel, vegetables, fruits, spices, processed food products, electrical and other machinery, plastic goods, construction materials, textiles, garments, chemicals, precious stones, and rubber.
Qatar is the largest supplier of LNG and LPG to India. In February 2023, Qatar Energy signed a US$ 78-billion deal with Petronet LNG, extending their LNG supply agreement until 2048. Additionally, in December 2024, GAIL signed a deal with Qatar Energy for the purchase of 60 LNG cargoes over five years. Haldia Petrochemicals (HPL) also entered into an agreement with QatarEnergy for the supply of two million tonnes of naphtha.
At present, Foreign direct investment (FDI) from Qatar into India stands at US$ 1.5 billion, while Indian companies have invested US$ 3.35 billion in Qatar. The Qatar Investment Authority (QIA), the country’s sovereign wealth fund, has invested in India across sectors such as retail, power, IT, education, health, and affordable housing. Both nations have identified key areas for increased QIA investment, including infrastructure, ports, shipbuilding, renewable energy, smart cities, food parks, and startups. Additionally, investment opportunities extend to emerging technologies like artificial intelligence, robotics, and machine learning. The QIA has made significant investments in Indian companies, including Reliance Retail Ventures, Adani Transmission, Shriram Housing Finance, and Swiggy.
Qatar has committed to investing US$ 10 billion in India across various sectors (including infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.), the two nations said in a joint statement.
The Qatari side expressed appreciation for India’s extension of the e-visa facility to its nationals, as both nations also welcomed the decision to celebrate the “India-Qatar Year of Culture, Friendship, and Sports” in the near future.
In a joint statement both sides reaffirmed the strong bonds of friendship and cooperation between India and Qatar. The leaders of both nations expressed optimism that this renewed partnership would continue to grow, benefiting the people of both countries and contribute to regional and global stability.
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