India and Qatar Elevate Their Relationship to Strategic Partnership, Targeting USD 28 Billion Trade Growth

India and Qatar have elevated their relationship to a strategic partnership, aiming to double bilateral trade to USD 28 billion over the next five years. Prime Minister Narendra Modi and Amir Sheikh Tamim Bin Hamad Al-Thani held extensive discussions, resulting in two agreements. One agreement establishes a strategic partnership, while the other revises the double taxation avoidance agreement.

Qatar is exploring opportunities to increase investments in India across various sectors. These include infrastructure, technology, manufacturing, food security, logistics, and hospitality. The Qatar Investment Authority (QIA) plans to invest USD 10 billion in India. Additionally, QIA will open an office in India as part of these efforts.

Strengthening Economic Ties

Five memoranda of understanding (MoUs) were signed to enhance economic cooperation. These MoUs focus on areas such as archive management and youth affairs and sports. The Ministry of External Affairs highlighted these outcomes following the Amir's visit at Prime Minister Modi's invitation. This marks his second state visit to India, with the first occurring in March 2015.

In a joint statement, both nations reaffirmed their strong friendship and cooperation. They expressed optimism about the renewed partnership's potential benefits for both countries and its contribution to regional and global stability. The leaders condemned terrorism in all forms and agreed to collaborate on combating it through bilateral and multilateral mechanisms.

Investment Opportunities

The two sides are considering an India-Qatar Free Trade Agreement. India's Unified Payments Interface (UPI) will be operational at Qatar National Bank (QNB) points of sale in Qatar. Furthermore, QNB plans to expand its presence in India by establishing an office in Gujarat's GIFT City.

The strategic partnership agreement aims to deepen cooperation in trade, energy, investment, security, and international forums. Arun Kumar Chatterjee from the Ministry of External Affairs stated that this agreement elevates bilateral relations to a strategic level. A roadmap for future cooperation will be developed as both sides work towards implementing this agreement.

Energy Collaboration

India and Qatar share a vibrant energy partnership, with Qatar being a major LNG source for India. In February 2024, Qatar Energy and Petronet LNG Limited signed an agreement for the supply of 7.5 million metric tonnes per annum of LNG from Qatar to India for 20 years starting in 2028. Both leaders discussed ways to further strengthen this energy partnership.

The Amir's visit included discussions on trade, investments, technology, energy, and people-to-people ties. This visit further cemented the deep relationship between the two countries. Modi and the Amir set a target to double bilateral trade from USD 14 billion to USD 28 billion over five years.

Cultural Exchange Initiatives

The extension of e-visa facilities by India to Qatari nationals was welcomed by Qatar. Both sides also agreed to celebrate an India-Qatar Year of Culture, Friendship, and Sports soon. The Amir received a ceremonial guard of honour at Rashtrapati Bhavan earlier in the day.

The Amir arrived on Monday evening for his visit, nearly a year after Modi visited Qatar in February 2024. Modi extended a warm welcome at Delhi airport with a handshake and hug, showcasing their camaraderie.

A high-level delegation accompanied the Amir, including Qatar's Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani and several ministers. CEOs from top Qatari entities like Qatar Investment Authority and Qatar Tourism were also part of the delegation.

The Amir met President Droupadi Murmu later that evening. She hosted a banquet reception for him and his delegation. During her speech, she recalled the historic ties between India and Qatar and expressed satisfaction with the deepening bilateral relations.