India’s relationship with Qatar has evolved into a strategic partnership, marked by significant developments in trade, energy, and security. The recent visit of Qatar’s Emir, Sheikh Tamim bin Hamad Al-Thani, to India in February 2025 underscores the deepening ties, with agreements to double bilateral trade to 28 billion and Qatar’s pledge to invest 10 billion in India. This partnership is pivotal for India’s energy security, economic growth, and geopolitical influence in West Asia.
| Key Highlights of the Recent India-Qatar Bilateral Engagement Trade Expansion- Both nations have set an ambitious goal to double bilateral trade from $14 billion to $28 billion by 2030. India and Qatar have also agreed to double bilateral trade by 2030 and explore a Comprehensive Economic Partnership Agreement (CEPA). Financial & Economic Collaboration- India and Qatar have signed a Revised Double Taxation Avoidance Agreement to prevent fiscal evasion. Further, there will be operationalization of UPI in QNB’s Points of Sales in Qatar. Investment- Qatar has committed to investing $10 billion in India, focusing on sectors such as infrastructure, technology, manufacturing, food security, logistics, and hospitality. Security & Counter-Terrorism- Both leaders of India and Qatar have unequivocally condemned terrorism, including cross-border terrorism. Further, there will be strengthening of intelligence sharing, law enforcement collaboration, and cybersecurity measures. Regional & Global Cooperation: India and Qatar have pledged to work together on UN reforms, particularly the Security Council. Further, there will be strengthening of ties within the Gulf Cooperation Council (GCC), with Qatar facilitating India-GCC strategic dialogue. |
What is the history of India-Qatar diplomatic relations?
| 1971 | India was among the few countries which recognized Qatar soon after its independence in 1971. |
| 1973 | India and Qatar established full diplomatic relations in 1973. Year 2023, marks the 50 years of the bilateral diplomatic relations. |
| 2008 | Visit of PM Manmohan Singh to Qatar marked a significant turning point in India-Qatar Relations. |
| 2015 | The Emir of Sheikh Tamim Bin Hamad Al Thani visited India in 2015. |
| 2016 | PM Narendra Modi visited Qatar in 2016. |
What is the significance of India-Qatar Relations?
Political Significance- Qatar’s membership in Gulf Cooperation Council (GCC) is politically significant for India, especially concerning issues like Kashmir. Also, India needs support of Qatar for UNSC permanent membership.
Energy Security- Qatar is the largest supplier of LNG to India. LNG makes up almost 50% of our LNG imports.
Strong economic and trade ties- India is among the top four largest export destinations for Qatar (Qatar exports to India- LNG, LPG, chemicals and petrochemicals, fertilisers, plastics). India is also among the top three sources of Qatar’s imports (India’s key exports to Qatar include cereals, copper articles, iron and steel articles, vegetables, fruits).
Strong Business Presence of Indian Companies- Several Indian Companies like L&T, Wipro, TCS and TechMahindra operate in Qatar.
Large Expatriate Community and Remittances- Around 8 lakh Indian expatriate community live and work in Qatar. The flow of remittances (around 750 million dollars) and safety of Indian expatriate community, makes Qatar vital for India’s interest.
Defence and strategic co-operation- India and Qatar have signed a Defence Cooperation Agreement for stronger defence cooperation . The maritime relations are further strengthened by Exercise Zair-Al-Bahr.
Vibrant Cultural Exchanges- Cultural events organised by community organizations affiliated to the Indian Cultural Centre (ICC). Qatar was a co-sponsor of India’s resolution for declaration of June 21 as International Yoga Day.
What are the Challenges in the India-Qatar Relations?
Trade Imbalance: India’s trade deficit with Qatar remains high, with Qatari exports dominating the trade basket.
Energy Security Dependence: India relies heavily on Qatar for LNG imports (over 40% of its total LNG needs). Any geopolitical instability or disruptions in supply chains (such as price hikes or policy changes) could impact India’s energy security and economic growth.
Regional Geopolitical Dynamics: The Israel-Hamas conflict and US-Gulf tensions pose challenges to India’s balanced diplomacy.
Diaspora Concerns: Labor rights issues and occasional anti-India narratives in Qatari media require diplomatic attention. For ex- Kafala System.
Anti-India Narratives: Some Qatari media outlets and social media influencers have echoed critical narratives about India’s internal policies, particularly concerning religious and human rights issues.
What Should be the Way Forward?
Strategic Alignment: Focus on long-term partnerships in energy, technology, and infrastructure.
Regional Stability & Diplomacy: Utilize Qatar’s mediation role to navigate conflicts in West Asia and Afghanistan.
Economic Diversification: Reduce trade dependency on LNG by expanding into technology, fintech, and advanced manufacturing.
Institutional Frameworks: Establish joint business forums and investment treaties to facilitate smoother economic cooperation.
Conclusion
The India-Qatar strategic partnership marks a significant milestone in India’s West Asia policy, offering immense opportunities for economic growth, energy security, and geopolitical influence. By addressing challenges like trade deficits and diaspora welfare, and leveraging Qatar’s mediation role in regional conflicts, India can strengthen its position in West Asia. The partnership, rooted in mutual trust and shared interests, is poised to play a pivotal role in shaping the future of the region and advancing India’s global aspirations.
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