Wednesday, 30 Apr, 2025
Both sides expressed satisfaction that regular engagements at various levels have contributed to the momentum of their multifaceted bilateral cooperation. Image Source: AFP
Following the establishment of the Strategic Partnership, both sides reaffirmed their dedication to enhancing bilateral relations through regular and structured collaboration across various fields
As Prime Minister Narendra Modi and the Amir of Qatar, Sheikh Tamim bin Hamad Al-Thani, discussed ways to improve economic and energy cooperation, India and Qatar on Tuesday upgraded their relations to a strategic partnership and decided to double bilateral trade to about $30 billion by 2030. Shortly after President Droupadi Murmu gave Sheikh Tamim a ceremonial welcome at Rashtrapati Bhavan, the two leaders met to discuss bilateral relations and regional issues, especially the Israel-Hamas conflict. When the Amir arrived in New Delhi on Monday, Modi personally welcomed him, demonstrating how much India values their friendship.
"The strategic partnership agreement actually elevates the present state of bilateral relationship to a strategic level. What we are looking at is deepening cooperation in fields of trade, energy security, as well as in regional and international fora," said Arun Kumar Chatterjee, Secretary, Ministry of External Affairs.
Following the establishment of the Strategic Partnership, both sides reaffirmed their dedication to enhancing bilateral relations through regular and structured collaboration across various fields, including politics, trade, investment, security, energy, culture, education, technology, innovation, sustainability, and people-to-people connections. They also welcomed the signing of the revised Double Taxation Avoidance Agreement and agreed to accelerate negotiations on the India-Qatar Bilateral Investment Treaty.
Both sides expressed satisfaction that regular engagements at various levels have contributed to the momentum of their multifaceted bilateral cooperation. They recalled the successful visit of HH the Amir to India in March 2015, as well as the visits of the Indian Prime Minister to Qatar in June 2016 and February 2024. Both parties agreed to maintain high-level exchanges through regular bilateral mechanisms at the Ministerial and senior-official levels.
Source: Department of Commerce, Government of India
In 2022-23, India’s bilateral trade with Qatar amounted to $18.77 billion, with exports to Qatar valued at $1.96 billion and imports from Qatar reaching $16.8 billion. Qatar’s major exports to India include LNG, LPG, chemicals and petrochemicals, plastics, and aluminium products, while India exports cereals, copper and iron & steel articles, vegetables, fruits, spices, processed food products, electrical and other machinery, plastic goods, construction materials, textiles and garments, chemicals, precious stones, and rubber to Qatar. India ranks among Qatar’s top three export destinations, alongside China and Japan, and is also one of its top three import sources, along with China and the US.
Qatar is India’s largest supplier of LNG, providing 10.74 MMT worth $8.32 billion in FY 2022-23, which accounts for over 48 percent of India’s total LNG imports. It is also the leading supplier of LPG to India, delivering 5.33 MMT valued at $4.04 billion, making up 29 percent of India’s total LPG imports. In addition to LNG, India imports ethylene, propylene, ammonia, urea, and polyethylene from Qatar, resulting in a significant trade imbalance in Qatar’s favor. However, India’s exports to Qatar have seen substantial growth in recent years.
Recognizing trade and commerce as a key pillar of their economic partnership, both sides highlighted the potential for further expansion and diversification of bilateral trade. They welcomed the upgrade of the existing Joint Working Group on Trade and Commerce to a Joint Commission on Trade and Commerce, which will serve as an institutional framework to review and oversee the full spectrum of economic cooperation. The commission will be led by the Ministers of Commerce and Industry from both nations. Emphasizing the importance of strengthening ties between their business and industry sectors, both sides welcomed the inaugural meeting of the Joint Business Council, scheduled for 13 February 2025.
Acknowledging the crucial role of businesses in driving economic growth, both sides underscored the significance of trade exhibitions as a strategic avenue for fostering commercial partnerships, expanding and diversifying bilateral trade, and facilitating investments. To achieve these goals, they committed to enhancing cooperation between their export promotion agencies, enabling enterprises to identify opportunities, overcome market challenges, and increase participation in global trade exhibitions. This initiative will allow businesses from both countries to showcase their products, explore joint ventures, and establish long-term commercial relationships.
Both sides also welcomed the implementation of India’s Unified Payment Interface (UPI) at QNB’s Points of Sale in Qatar and expressed their anticipation for a nationwide rollout of UPI acceptance. Additionally, they agreed to explore the possibility of conducting bilateral trade settlements in their respective currencies. The expansion of QNB into India through the establishment of an office in GIFT City was also welcomed.
During the visit of H.H. Sheikh Tamim bin Hamad bin Khalifa Al Thani, Amir of Qatar, to India from 17-18 February, the Confederation of Indian Industry, in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT), organized the India-Qatar Joint Business Forum on 18 February 2025 in New Delhi. The event was honored by the presence of Piyush Goyal, Minister of Commerce and Industry, Government of India, and H.E. Sheikh Faisal bin Thani bin Faisal Al Thani, Minister of Commerce and Industry, State of Qatar, both of whom delivered keynote addresses at the forum.
Sheikh Tamim’s visit to India, his first in nearly a decade, signified a renewed phase in bilateral relations following tensions stemming from the detention of eight Indian Navy veterans in Qatar two years ago. Initially sentenced to death in 2023, their penalties were later reduced by a Qatari court.
In February 2024, the Qatari Amir ordered their release, which was swiftly followed by Prime Minister Modi’s visit to Doha. Seven of the veterans have since returned to India, while Commander (retired) Purnendu Tiwari remains in Qatar. With a population of 830,000, Indians constitute the largest expatriate community in Qatar. Modi expressed gratitude to Sheikh Tamim for his support, particularly during the Covid-19 pandemic, while the Amir acknowledged the significant contributions of the Indian community to Qatar’s development.
