India and Qatar elevated their bilateral relations on Tuesday, forging a strategic partnership with a strong focus on boosting trade, energy cooperation, and investments. This landmark agreement aims to double the trade between the two nations to an impressive $30 billion by 2030.
Prime Minister Narendra Modi and Qatari Amir Sheikh Tamim bin Hamad Al-Thani discussed ways to enhance their nations’ ties during their meeting in New Delhi. They deliberated on regional issues, including the ongoing Israel-Hamas conflict, and explored various avenues to deepen their collaboration. The ceremonial welcome for Sheikh Tamim, hosted by President Droupadi Murmu at Rashtrapati Bhavan, further highlighted the significance of this visit for India.
In a message on social media platform X, Modi emphasized the fruitful discussions with Sheikh Tamim, noting that trade featured prominently in their talks. The two leaders aim to enhance India-Qatar trade ties by diversifying their economic engagements. Some key areas of potential collaboration include energy, healthcare, technology, food processing, pharmaceuticals, and green hydrogen.
Doubling Trade and Major Investments
As part of the strategic partnership, India and Qatar have set an ambitious goal of doubling their annual trade, which currently stands at $14.08 billion. The target is to reach $30 billion by 2030. Negotiations are also set to begin for a bilateral trade deal that will address market access concerns in both goods and services.
Qatar also committed to investing $10 billion in India. The Qatar Investment Authority (QIA), the nation’s sovereign wealth fund, has already invested $1.5 billion in sectors such as retail, power, IT, and affordable housing. Moving forward, both countries will focus on investments in a variety of areas including infrastructure, renewable energy, food parks, ports, shipbuilding, and emerging technologies such as artificial intelligence and robotics.
The two countries signed several important agreements during Sheikh Tamim’s visit. These included a revised treaty for avoiding double taxation and five memorandums of understanding (MoUs) related to economic partnership, archives and documentation, and youth affairs and sports.
Energy Ties and Future Prospects
Energy cooperation between India and Qatar remains a cornerstone of their growing partnership. Qatar is India’s largest supplier of liquefied natural gas (LNG) and liquefied petroleum gas (LPG). In FY 2023-24, Qatar supplied 10.91 million metric tonnes of LNG and 4.92 million metric tonnes of LPG to India.
In a significant development, Qatar Energy and Petronet LNG Limited, an Indian company, signed an agreement in February 2024 for the supply of 7.5 million metric tonnes per annum of LNG to India for 20 years, starting in 2028. This long-term arrangement will further solidify the energy ties between the two countries.
Security, Law Enforcement, and Regional Cooperation
Along with trade and energy cooperation, the two leaders also discussed the need for strengthened security collaboration. Both sides agreed to enhance intelligence sharing, cooperation in law enforcement, and joint efforts to combat issues such as drug trafficking, cybercrime, and other transnational crimes.
The strategic partnership aims to foster closer ties between India and Qatar at regional and international forums, particularly in areas of mutual interest such as security, trade, and energy. India already shares strategic partnerships with four other Gulf Cooperation Council (GCC) nations—Saudi Arabia, UAE, Oman, and Kuwait.
Supporting the Indian Diaspora
A notable aspect of the discussions between Modi and Sheikh Tamim revolved around the welfare of the Indian community in Qatar, which is the largest expatriate group in the country, numbering approximately 830,000. Modi thanked the Qatari leadership for their support to the Indian community, particularly during the challenges of the COVID-19 pandemic.
The Amir also expressed appreciation for the contributions of the Indian community to Qatar’s growth. The two leaders acknowledged the need to address issues related to Indian nationals in Qatari jails, with around 600 Indians currently incarcerated. A pending agreement on the transfer of sentenced persons is still awaiting ratification by Qatar, though the Qatari government has granted pardons to several Indian prisoners in the past.
Renewed Ties After Diplomatic Strains
Sheikh Tamim’s visit marks a significant turning point in India-Qatar relations, which faced strains in recent years due to the incarceration of eight Indian Navy veterans in Qatar. The men were sentenced to death in 2023, but the sentence was later commuted. In February 2024, the Amir ordered their release, signaling a thaw in bilateral relations. Following this, Modi visited Doha, further cementing the renewed partnership.
The strategic partnership between India and Qatar reflects both countries’ commitment to strengthening their ties across various domains, from trade and investments to security and energy cooperation. As both nations work toward achieving their ambitious goals, the future of their relationship looks promising, with new opportunities for collaboration in various sectors on the horizon.
