In a significant diplomatic and economic development, India and Qatar have elevated their bilateral relationship to a “strategic partnership.” This decision came as Prime Minister Narendra Modi and Amir Sheikh Tamim bin Hamad Al Thani held talks in New Delhi, focusing on trade, investment, and energy cooperation. The leaders also set an ambitious target to double bilateral trade to $28 billion over the next five years and announced a Qatari investment of $10 billion in India.

Qatar’s sovereign wealth fund, the Qatar Investment Authority, currently holds $1.5 billion in Foreign Direct Investment (FDI) in India, spanning various sectors such as retail, power, IT, education, health, and affordable housing. The recent discussions identified further investment opportunities in infrastructure, ports, shipbuilding, renewable energy projects, smart cities, food parks, start-ups, and emerging technologies such as artificial intelligence, robotics, and machine learning.

The two leaders also explored the potential benefits of a Free Trade Agreement (FTA) between India and Qatar, aiming to enhance trade relations and complement India’s ongoing negotiations with the Gulf Cooperation Council (GCC).

Energy Ties: A Key Pillar of Cooperation

Qatar remains a crucial supplier of liquefied natural gas (LNG) to India, reinforcing the energy partnership between the two nations. Notably, in February 2024, Qatar Energy and Petronet LNG Limited signed a landmark agreement ensuring the supply of 7.5 million metric tons of LNG annually to India for 20 years starting in 2028. This long-term agreement reflects India’s strategy to secure its energy needs from stable and reliable partners.

Beyond trade and investment, the leaders also addressed regional security issues, including the ongoing conflict between Israel and Hamas. While both sides expressed their respective positions, they reaffirmed their commitment to diplomatic dialogue and peaceful resolutions in global conflict zones.

Counterterrorism cooperation was another focal point, with both nations unequivocally condemning terrorism in all its forms. They pledged to strengthen collaboration on intelligence sharing, cybersecurity, anti-money laundering, and transnational crimes. A joint committee on security and law enforcement was also emphasized as a mechanism to further these efforts.

Addressing Key Bilateral Concerns

One of the key issues on the agenda was the status of a former Indian Navy officer detained in Qatar, highlighting the importance of resolving this specific case. While India acknowledged Qatar’s efforts in ensuring the welfare of Indian nationals in the country, the Prime Minister reiterated the importance of addressing the case of the last remaining Indian detainee.

Agreements and Memoranda of Understanding (MoUs)

During Sheikh Al Thani’s second visit to India, the two nations signed two agreements and five Memoranda of Understanding (MoUs). These included:

  • An agreement on the establishment of a strategic partnership
  • A revised agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion
  • MoUs on economic collaboration, youth and sports, investments, archival cooperation, and partnerships between business chambers

With Qatar now joining the ranks of the UAE, Saudi Arabia, Oman, and Kuwait in India’s strategic partnerships within the GCC, this latest development marks a new chapter in India-Qatar relations. The commitment to expanding trade, fostering investments, and enhancing energy cooperation not only signals a promising future for both nations but also lays the foundation for long-term economic growth and mutual prosperity.