Context:
Recently, the Prime Minister held a bilateral meeting with the Emir of Qatar Sheikh Tamim Bin Hamad Al Thani at the Hyderabad House in New Delhi.
More on the news:
- Sheikh Tamim received a ceremonial welcome, including a Guard of Honour, at the forecourt of Rashtrapati Bhavan.
- This meeting aims to strengthen the strong partnership between India and Qatar, with both countries continuing to work closely in various sectors.
Key Highlights of the meeting:
India and Qatar upgraded their relations to a “Strategic Partnership.”
- With this partnership, Qatar joins in India’s strategic engagements within the Gulf Cooperation Council (GCC).
- The Gulf Cooperation Council was established in 1981 in Riyadh (Saudi Arabia) and is a regional political and economic union of: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The two countries set a target to double their bilateral trade from $14 billion to $28 billion by 2030, focusing on trade, investment, and energy.
Qatar’s Sovereign Wealth Fund committed $10 billion to India for sectors like infrastructure, renewable energy, AI, robotics, and more.
India and Qatar discussed the possibility of a Free Trade Agreement (FTA) to enhance economic cooperation.
- India is also negotiating an FTA with the GCC, which includes Qatar.
Qatar Investment Authority (QIA) will open an office in India, expanding investment ties.
India’s UPI will be operational at Qatar National Bank’s (QNB) Point of Sale terminals in Qatar.
Qatar National Bank will open an office in India’s GIFT City.
Two agreements and five MoUs were signed, covering economic cooperation, youth affairs, and a double taxation avoidance pact.
Qatar reaffirmed its commitment as a major LNG supplier to India. An agreement with Qatar Energy and Petronet LNG Limited will ensure the supply of 7.5 million metric tons of LNG annually to India for 20 years, starting in 2028.
Overview of India-Qatar relations:
- Over 830,000 strong and vibrant Indian community in Qatar is a testament to the close people-to-people ties that continue to nurture the cultural bonds between the two countries.
- India is Qatar’s second-largest trading partner, with about $14 billion in bilateral trade in 2024.
- India’s export to Qatar during the period was USD 1.7 billion and India’s import from Qatar was USD 12.38 billion.
- Qatar is the largest supplier of LNG to India, accounting for over 40% of India’s global LNG imports.
- According to the Qatar Chamber of Commerce and Industry (QCCI), over 20,000 big and small Indian companies operating in Qatar, wholly owned and Joint Venture.
- India also regularly participates in the biennial Doha International Maritime Defence Exhibition and Conference (DIMDEX) in Qatar.