In News:

• The Union Minister of Commerce and Industry, Piyush Goyal, recently visited Doha, Qatar, to co-chair the India–Qatar Joint Commission on Economic and Commercial Cooperation with H.E. Sheikh Faisal bin Thani bin Faisal Al Thani, Qatar’s Minister of Commerce and Industry.
• The visit marked a significant step toward strengthening bilateral economic engagement, deepening energy cooperation, and advancing a future-ready partnership between the two nations.

India–Qatar Joint Commission Meeting: Key Outcomes

• Ambitious Trade Target:Both sides recognised the untapped potential in their economic relationship and set an ambitious goal to double bilateral trade by 2030. Currently, trade between the two nations stands at around USD 14 billion.
• India–Qatar Comprehensive Economic Partnership Agreement (CEPA):The countries reaffirmed their commitment to pursue an ambitious CEPA, a free-trade pact aimed at deepening market access, investment flows, and trade facilitation.
• Digital Integration:A major milestone was the launch of India’s Unified Payments Interface (UPI) in Qatar, enabling seamless digital payments for both the Indian diaspora and Qatari consumers—symbolising the growing digital and fintech cooperation between the two nations.
• Sectoral Cooperation:
  The ministers identified multiple sectors for expansion of trade and investment:
  • Traditional sectors: Pharmaceuticals, textiles, gems &jewellery.
  • Manufacturing & technology: Electronics, automobiles, processed foods.
  • Future-focused areas: IT, high-tech industries, and renewable energy (especially solar).
• Energy Partnership:India appreciated Qatar’s long-term LNG supply agreement of 7.5 million tonnes per year from 2028, underscoring the centrality of energy security in the bilateral relationship.

Bilateral Trade and Economic Ties

• Trade Profile (FY 2024–25):Bilateral trade stood at USD 14.15 billion, with India facing a trade deficit of about USD 10.78 billion, primarily due to hydrocarbon imports.
  • Qatar’s exports to India comprise petroleum and LNG (89% of total trade), while India exports food products, textiles, machinery, and chemicals.
• Investment Linkages:Over 20,000 Indian companies (wholly owned and joint ventures) operate in Qatar, while Qatar’s FDI in India is valued at around USD 1.5 billion, spread across sectors like energy, infrastructure, and technology.
  • The Qatar Investment Authority (QIA) has also invested heavily in India’s National Infrastructure Pipeline (NIP), technology start-ups, and real estate.
• Digital and Fintech Cooperation:The introduction of UPI in Qatar represents India’s expanding digital public infrastructure diplomacy, strengthening financial inclusion for over 800,000 Indian residents in Qatar.

Strategic Cooperation Beyond Trade

Energy Security

• Qatar as a Key Supplier:Qatar is India’s largest LNG and LPG supplier, accounting for 26% of India’s LPG imports and over three-fourths of total bilateral trade through hydrocarbons.
• Stability and Clean Transition:Long-term LNG contracts ensure price stability and support India’s clean energy transition under its net-zero goals.

Defence and Security

• The India–Qatar Defence Cooperation Agreement (2008, renewed in 2018) provides a framework for training, naval visits, and joint maritime exercises such as Za’ir-Al-Bahr (Roar of the Sea).
• Regular participation in events like DIMDEX (Doha International Maritime Defence Exhibition) reflects deepening maritime security ties in the Indian Ocean Region.

Cultural and People-to-People Ties

• The 2012 Cultural Cooperation Agreement and the 2019 India–Qatar Year of Culture have promoted cultural exchange through festivals like ‘Passage to India’ (2024).
• The Indian diaspora in Qatar, numbering over 830,000, forms a vital bridge between the two nations, contributing to Qatar’s development and remitting billions annually to India.

Mutual Significance

For India

• Energy Security: Ensures steady LNG supplies and shields India from global price volatility.
• Strategic Investments: QIA’s long-term investments aid infrastructure and industrial growth.
• Diaspora Strength: Provides remittances and strengthens cultural linkages.
• Strategic Depth in West Asia: Qatar’s regional diplomacy and ties with global powers enhance India’s strategic outreach in the Gulf.

For Qatar

• Stable Energy Market: India provides a reliable and growing market for LNG exports, critical for Qatar’s fiscal stability.
• Economic Diversification: India offers investment opportunities beyond hydrocarbons, particularly in fintech, renewables, healthcare, and education.
• Food and Supply Chain Security: India’s exports ensure Qatar’s access to essential commodities and pharmaceuticals.
• Knowledge Partnership: India’s IT, education, and skill development sectors support Qatar’s shift toward a knowledge-based economy under Qatar National Vision 2030.

Broader Vision: Strategic Partnership and Future Outlook

• The visit underscored the elevation of India–Qatar ties to a Strategic Partnership, aligning with India’s vision of becoming a Viksit Bharat by 2047.
  Minister Goyal emphasised India’s macroeconomic resilience, robust startup ecosystem, and inclusive growth model, encouraging greater Qatari investments and joint ventures in India’s high-growth sectors.
• Both nations agreed to strengthen institutional dialogues, deepen cooperative federalism, and promote business-to-business engagements through platforms such as the India–Qatar Joint Business Council (JBC).