Qatar Amir In India: For the first time since the establishment of diplomatic ties in 1973, India and Qatar elevated their bilateral ties to strategic partnership during the visit of the Amir of Qatar, Sheikh Tamim bin Hamad Al-Thani to India. During the crucial visit, both sides aimed at boosting two-way trade and investments by negotiating a free trade agreement as well as an investment treaty.
“Had a very productive meeting with my brother, Amir of Qatar H.H. Sheikh Tamim Bin Hamad Al Thani, earlier today. Under his leadership, Qatar has scaled new heights of progress. He is also committed to a strong India-Qatar friendship. This visit is even more special because we have elevated our ties to a Strategic Partnership,” said Prime Minister Narendra Modi after a bilateral meeting with Qatar’s Amir.
He also said, “Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages. Our nations can also work closely in sectors like energy, technology, healthcare, food processing, pharma and green hydrogen.”
The Amir last visited India in March 2015 whereas Prime Minister Modi went to Qatar in June 2016 and February 2024.
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During the visit, both sides firmed up plans to start negotiations for having a trade agreement, officially called Comprehensive Economic Partnership Agreement (CEPA) and double the two-way trade in goods by 2030, according to the joint statement.
India’s bilateral trade with Qatar in 2022-23 stood at $18.77 billion. India’s export to Qatar during 2022-23 was $1.96 billion and India’s import from Qatar was $16.8 billion.
Qatar’s main exports to India include LNG, LPG, chemicals and petrochemicals, plastics, and aluminium articles, while India’s main items of export to that country include cereals, copper, iron and steel, vegetables, and spices among others.
India is among the top three largest export destinations for Qatar (China and Japan being the other two) and is also among the top three sources of Qatar’s imports, along with China and the U.S.
“The two sides shall work to further enhance bilateral energy cooperation, including through promotion of trade and mutual investments in energy infrastructure and regular meetings of the relevant stakeholders from both sides, including the Joint Task Force on Energy,” said the joint statement.
Qatar is the largest supplier of LNG to India (10.74 MMT for $8.32 billion in FY 2022-23), accounting for over 48% of India’s global LNG imports. Qatar is also India’s largest supplier of LPG (5.33 MMT for $4.04 billion in FY 2022-23) accounting for 29% of India’s total LPG imports, according to official statistics.
“In light of the newly established Strategic Partnership, the two sides reaffirmed their commitment to further strengthen the bilateral relations through regular and structured cooperation in all areas, including political, trade, investment, security, energy, culture, education, technology, innovation, sustainability and people-to-people ties. In this regard, the two sides expressed happiness at the signing of the revised Double Taxation Avoidance Agreement and also agreed to expedite negotiations on the India-Qatar Bilateral Investment Treaty,” the joint statement said.
In order to increase its investment in India, Doha has decided to open an office in India of the Qatar Investment Authority (QIA). Some of major investments made by QIA into India include $200 million through a primary equity issuance in Bharti Airtel’s arm Airtel Africa Ltd. In February 2020, the QIA invested about $450 million for a 25.1% stake in a unit of Adani Transmission Ltd.
Recently, in August 2023, QIA announced its plan to invest approximately $1 billion into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (Reliance Industries).
“Qatar is also an important partner for investments in India. The Qatar’s Sovereign Wealth Fund, the Qatar Investment Authority, currently has about $1.5 billion FDI in India in sectors like retail, power, IT, education, health, affordable housing etc.,” said Arun Chatterjee, Secretary (CPV & OIA), Ministry of External Affairs during a press briefing.
