21-February-2025-Editorial

SHEIKH TAMIM BIN HAMAD AL THANI’S VISIT TO INDIA

The Amir of Qatar, Sheikh Tamim Bin Hamad Al Thani, visited India to strengthen bilateral relations, particularly in trade, energy, and investment. Both nations pledged to boost trade volume to USD 28 billion and increase Qatari investments in India.

Key Takeaways from the Visit

• Strategic Partnership: India and Qatar elevated their relationship to a strategic partnership, enhancing collaboration across multiple sectors such as trade, investment, energy, and security.
• Bilateral Trade Expansion: India and Qatar set a goal to double their trade volume from USD 14 billion to USD 28 billion by 2030.
• Increased Qatari Investments: Qatar’s sovereign wealth fund has already invested USD 1.5 billion in India and has committed an additional USD 10 billion for infrastructure, renewable energy, and advanced technologies like artificial intelligence (AI) and machine learning.
• Revised Tax Agreement: Both nations signed an updated Agreement for the Avoidance of Double Taxation, improving economic and financial collaboration.
• Free Trade Agreement (FTA): Discussions took place regarding a possible Free Trade Agreement (FTA), with ongoing negotiations between India and the Gulf Cooperation Council (GCC), which includes Qatar.
• Infrastructure Collaboration: Talks included integrating India’s Unified Payment Interface (UPI) in Qatar and expanding the presence of Qatar National Bank in India through the Gujarat International Finance Tec-City (GIFT City).
• Geopolitical Matters: India reiterated its support for a two-state solution concerning the Israel-Palestine conflict.

Significance of Qatar for India

Energy Security

• In FY 2022-23, Qatar was India’s largest supplier of Liquefied Natural Gas (LNG), accounting for over 48% of total imports.
• It also supplied 29% of India’s Liquefied Petroleum Gas (LPG) needs.
• This partnership supports India’s shift toward cleaner energy sources, aiding climate goals and reducing coal dependency.

Strategic Cooperation

• Qatar plays a crucial role in India’s “Link and Act West” policy, which strengthens ties with Gulf nations such as Saudi Arabia, UAE, Oman, and Kuwait.

Geopolitical Importance

• Qatar is a key mediator in global issues, including Afghanistan and the Israel-Palestine conflict.
• Its close relations with the US also provide India a platform for regional engagement.

Counterterrorism Collaboration

• India and Qatar work together to combat terrorism and extremism.
• Qatar’s strategic location facilitates maritime security in the Gulf, a crucial region supplying 55.3% of India’s total crude oil demand (2022–23).

India-Qatar Bilateral Relations

Defense Ties

• Cooperation includes training programs, naval visits, and joint exercises like Za’ir-Al-Bahr (Roar of the Sea).
• India participates in the biennial Doha International Maritime Defence Exhibition and Conference (DIMDEX).

Trade Relations

• In 2023-24, bilateral trade stood at USD 14.08 billion, with Indian exports at USD 1.7 billion and imports at USD 12.3 billion.
• India is one of Qatar’s top three export destinations and import sources, alongside China and the US.
• Key Qatari exports to India: LNG, LPG, petrochemicals, and aluminum.
• Key Indian exports to Qatar: cereals, textiles, iron, steel, and machinery.

Investment

• Over 15,000 Indian businesses operate in Qatar, with Indian companies investing USD 450 million.

Cultural Ties

• The two nations have an ongoing Cultural Cooperation Agreement (2012), fostering exchanges.
• The year 2019 was marked as the India-Qatar Year of Culture.

Indian Diaspora

• Over 835,000 Indians reside in Qatar, forming the largest expatriate group (27% of Qatar’s population).

Conclusion

The visit of the Amir of Qatar to India marked a significant step in strengthening bilateral ties. The commitments made in trade, investment, and security highlight the growing partnership between the two nations. Future collaborations, including a potential FTA and expanded energy cooperation, are expected to further boost their economic and strategic relations.