Context:
The Amir of Qatar, Sheikh Tamim Bin Hamad Al-Thani, recently visited India for a State Visit, marking his second trip to the country since his first visit in March 2015. During this visit, he held bilateral talks with Prime Minister Modi.
- India-Qatar relations are built on a rich historical foundation, strong high-level engagements, and a significant Indian diaspora contributing to Qatar’s development and bilateral cooperation.
Key Outcomes of the Visit:
- Qatar remains a crucial partner for India due to its strategic location, trade potential, energy resources, and vibrant Indian diaspora.
- During the visit, both countries elevated their relationship to a Strategic Partnership, aligning India and the Gulf Cooperation Council (GCC) members, including the UAE, Saudi Arabia, Oman, and Kuwait, in strengthening India’s strategic engagements within the region.
Key Agreements Signed:
- The two countries signed two agreements and five MoUs focused on economic cooperation, youth affairs, and a Double Taxation Avoidance Agreement.
Doubling Bilateral Trade:
- India and Qatar set a goal to increase bilateral trade from US$ 14 billion to US$ 28 billion by 2030, focusing on trade, investment, and energy cooperation.
Trade and Investment Developments:
- Qatar’s Sovereign Wealth Fund committed to investing US$ 10 billion in India, targeting sectors such as infrastructure, ports, shipbuilding, renewable energy, smart cities, food parks, startups, AI, robotics, and machine learning.
- Qatar’s Investment Authority (QIA) announced plans to open an office in India.
- India’s Unified Payments Interface (UPI) was launched at Qatar National Bank’s (QNB) Point of Sales, and QNB also plans to expand its presence in India by opening an office in GIFT City.
India Qatar Relation
- Defence Cooperation:
- India provides training slots in its defence institutions to Qatar and other partner countries.
- India regularly participates in the Doha International Maritime Defence Exhibition and Conference (DIMDEX) in Qatar.
- The India-Qatar Defence Cooperation Agreement was signed in November 2008.
- Bilateral Exercises: Za’ir Al Bahr (Naval).
- Commercial & Investment Relations:
- In the fiscal year 2022-23, India-Qatar bilateral trade totaled US$ 18.77 billion.
- India exported US$ 1.96 billion worth of goods to Qatar, while imports from Qatar amounted to US$ 16.8 billion.
- India ranks among the top three destinations for Qatari exports and one of the top sources of Qatari imports, alongside China and the US.
- Energy Cooperation:
- Qatar is the largest supplier of Liquefied Natural Gas (LNG) to India.
- India imports around 70% of its natural gas needs from Qatar.
- Cultural Cooperation:
- As of December 2023, over 835,000 Indian nationals live in Qatar, constituting around 27% of the total population.
- Qatar has introduced labor reforms that include the abolition of the Kafala system, easing job changes, penalizing passport confiscation, establishing a minimum wage, and enhancing worker protections.
- Ayurveda: Qatar has allowed the practice of complementary medicine, including Ayurveda.
- Yoga: Qatar co-sponsored the UNGA resolution, adopted unanimously with 177 co-sponsors, declaring 21 June as the International Day of Yoga (IDY).
Exploring Free Trade Agreement (FTA):
- India and Qatar discussed the possibility of a Free Trade Agreement (FTA) to further enhance economic ties.
- India is negotiating an FTA with the GCC, which includes Qatar.
Conclusion:
Qatar plays a vital role as India’s key partner, thanks to its strategic position, economic potential, energy resources, and dynamic Indian diaspora. The visit marks a reset in India-Qatar ties, particularly following tensions over the incarceration of eight Indian Navy veterans, with seven returning home and one still in Qatar. The two countries are focused on further strengthening economic and security cooperation.
