Qatar and India Upgrade Ties to Strategic Partnership, Strengthen Economic Cooperation

Qatar and India have decided to elevate their ties to the level of a “strategic partnership”, with leaders from both nations discussing the possibility of a bilateral Comprehensive Economic Partnership Agreement. Talks in Delhi focused on trade, investment, and energy cooperation. Currently, Qatar-India bilateral trade stands at US$14 billion annually, with a target to double it to US$28 billion by 2030.

By Melissa Cyrill

Qatar and India have upgraded their ties to a “strategic partnership”, setting a goal to double their bilateral trade from the current US$14 billion within the next 5 years. With this development, Qatar becomes the latest Gulf Cooperation Council (GCC) member to establish a strategic partnership with India, joining the UAE, Saudi Arabia, Oman, and Kuwait.

During their talks in New Delhi on February 18, Indian Prime Minister Narendra Modi and Qatar’s Emir Sheikh Tamim Bin Hamad Al Thani oversaw the signing of multiple agreements and MoUs covering trade, investment, energy cooperation, youth affairs, counterterrorism efforts, and a double taxation avoidance agreement while also discussing regional developments in the Middle East.

This is Sheikh Al Thani’s second official visit to India.

Expanding Qatar-India bilateral investment and trade

Besides exchanging an agreement establishing their strategic partnership, Qatar and India also affirmed a Revised Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and its Protocol. Additionally, the two sides signed five memorandums of understanding (MoUs) on economic collaboration, youth and sports, archives, investments, and between business chambers.

Qatar’s sovereign wealth fund currently holds US$1.5 billion in foreign direct investment (FDI) in India in the retail, power, IT, education, health, and affordable housing sectors, and the joint statement confirmed Qatar’s commitment to investing an additional US$10 billion in the country.

Briefing the media, Arun Chatterjee, Secretary in the Ministry of External Affairs (MEA) said that both leaders had identified areas in which the Qatar Investment Authority (QIA) could increase investments in India—infrastructure, ports, ship-building, energy including renewable energy, smart cities, food parks, startups, and new technologies such as artificial intelligence, robotics, and machine learning.

The Qatar-India economic partnership has grown significantly in recent years. Qatar is India’s largest supplier of liquefied natural gas (LNG), accounting for over 40 percent of India’s LNG imports. In fact, in February 2024, “Qatar Energy and Petronet LNG Limited had signed an agreement for supply of 7.5 million metric tonnes per annum of LNG from Qatar to India for 20 years starting 2028”, as noted by the MEA Secretary. This energy partnership is a cornerstone of their economic ties, ensuring India’s energy security while strengthening Qatar’s role as a key global energy supplier.

India is also a major exporter to Qatar, with key commodities including machinery, electrical equipment, cereals, textiles, and chemicals. In 2022, Indian exports to Qatar stood at US$1.96 billion, highlighting the growing diversification of trade between the two nations.

During their talks, both sides emphasized the importance of enhancing and diversifying trade while prioritizing market access issues related to goods and services. They also agreed to explore the possibility of a bilateral Comprehensive Economic Partnership Agreement (CEPA) to strengthen economic ties. Additionally, they set a target to double bilateral trade to US$28 billion by 2030.

Cross-border investment, business collaboration, and digital payments

Qatar has been an active investor in India, particularly through its sovereign wealth fund, the QIA. Notable investments include:

• US$450 million in Adani Electricity Mumbai Limited, supporting India’s energy infrastructure development.
• Investments in India’s digital economy, including a US$150 million stake in Reliance Retail.
• Increased participation in India’s startup ecosystem, with QIA exploring opportunities in fintech, logistics, and healthcare.

On the other hand, Indian businesses have a strong presence in Qatar, with over 6,000 Indian companies operating across various sectors, including construction, IT, banking, and hospitality.

In their joint statement, India recognized Qatar’s growing role as a regional hub for goods and services, its strategic location, world-class infrastructure, and business-friendly policies. Both sides seek to deepen cooperation between investment authorities, financial institutions, and businesses to explore new opportunities for investment and trade expansion.

India’s Unified Payments Interface (UPI) is being implemented at Qatar National Bank (QNB) Points of Sale in Qatar and a nationwide rollout of UPI acceptance is expected next.

The two countries are also exploring settlement of bilateral trade in their respective currencies. QNB is also setting up its office in GIFT City.

Emerging sectors and future opportunities

As both nations focus on economic diversification, emerging sectors such as renewable energy, technology, and infrastructure development are poised to play a larger role in their bilateral economic ties. Qatar’s National Vision 2030 aligns with India’s Make in India and Digital India initiatives, fostering collaboration in:

• Green hydrogen and renewable energy solutions.
• Smart city development and urban infrastructure projects.
• Financial technology and digital transformation.

Additionally, Qatar’s hosting of global sporting events has opened avenues for Indian firms specializing in event management, IT solutions, and tourism services.

In the education sector, the two sides agreed to increase interactions among educational institutions, including through academic exchanges, joint research, students and scholar exchanges, and University-to-University cooperation of both countries.

Strengthening institutional and diplomatic engagement

On the sidelines of the February 17-18 visit of Sheikh Al Thani, the Confederation of Indian Industry (CII), in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT), hosted the India-Qatar Joint Business Forum on February 18 in New Delhi.

The forum featured keynote addresses by Piyush Goyal, India’s Minister of Commerce and Industry, and Sheikh Faisal bin Thani bin Faisal Al Thani, Qatar’s Minister of Commerce and Industry.

To solidify their growing partnership, two MoUs were signed during the event between:

• Confederation of Indian Industry (CII) and Qatar Business Association
• Invest India and Invest Qatar

Qatar and India also agreed to hold regular meetings of the Joint Working Group on Labour and Employment to address issues related to expatriates, manpower mobility, dignity, safety and welfare of workers and matters of mutual interest.

Previously, in 2023, both nations discussed expanding cooperation in key sectors during high-level visits, leading to:

• Increased ease of doing business for Indian firms in Qatar.
• Enhanced bilateral agreements on taxation and investment protection.
• Strengthening financial and banking sector collaboration to ease trade transactions.

Conclusion

The Qatar-India strategic partnership is built on strong economic fundamentals, with trade, investment, and sectoral collaboration driving growth. With mutual economic interests and a shared vision for sustainable development, the partnership is set to expand further, creating new opportunities for businesses and investors in both nations.

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