Delhi-Doha engagement looks beyond energy trade
The India-Qatar relationship has evolved into a multifaceted strategic partnership encompassing security and defence cooperation, health care and education
The recent visit of Sheikh Tamim bin Hamad Al Thani, the Amir of Qatar, to India marks a momentous chapter in bilateral relations between the two countries. The visit underlined their deepening strategic partnership, propelled by shared economic interests, converging geopolitical perspectives, and a mutual desire for regional stability.
While historically anchored in energy cooperation, the India-Qatar relationship has evolved beyond a transactional energy dependency into a multifaceted strategic partnership encompassing security and defence cooperation, trade, investments, energy, technology, and vital sectors like health care, education, and workforce. Qatar has joined the United Arab Emirates (UAE), Saudi Arabia, Oman, and Kuwait in establishing a strategic partnership with India.
Qatar has been India’s largest LNG supplier for decades, accounting for over 48% of its global LNG imports. This partnership has formed the backbone of India’s energy security strategy, ensuring access to stable and affordable energy supplies while providing Qatar with a large and assured market that is growing exponentially. According to the International Energy Agency (IEA), India’s demand for LNG is set to rise significantly by 78% to 64 billion cubic meters of natural gas equivalent by 2030. This aligns with India’s goal of increasing natural gas’s share in its energy mix to 15% by 2030, up from around 6% in 2023.
As India’s economy surges and its energy demand escalates to meet its developmental targets under Viksit Bharat, Qatar’s role as a dependable energy partner becomes even more critical. In February 2024, India secured a favourable long-term agreement with Qatar to import 7.5 million tonnes of LNG annually for two decades at a total cost of $78 billion. This deal is projected to save India an estimated $6 billion.
During the visit, both countries outlined plans to expand their energy relationship beyond simply trading LNG, aiming for a broader partnership encompassing green hydrogen, solar and wind energy, and carbon capture and storage (CCS) technologies. Qatar committed to collaborating on solar power projects and grid integration to assist India in achieving its 500 GW renewable energy target by 2030.
The Qatar Investment Authority (QIA), which has cumulative investments in India of around $3.5 billion, pledged to invest an additional $10 billion in multiple sectors, supporting projects under the Make in India initiative, promoting economic growth, and generating employment. QIA has also committed to establishing a dedicated Green Energy Fund for India, designating $2 billion from its total allocation. The QIA’s decision to establish an office in India will facilitate increased investment flows and strengthen economic ties between the two nations.
The revised Double Taxation Avoidance Agreement (DTAA) strives to minimise fiscal barriers for Qatari businesses operating in India. Qatar now benefits from tax concessions comparable to those of the UAE, especially regarding digital services and withholding taxes. Ongoing discussions about a stand-alone Bilateral Investment Treaty, anticipated to be finalised by 2026, aim to enhance protection for Qatari investments in India.
The economic aspect of the India-Qatar relationship received a significant boost during the visit. Both nations set an ambitious target to double bilateral trade to $28 billion by 2030. Strengthening bilateral institutional mechanisms, including establishing a Joint Commission on Trade and Commerce co-chaired by the ministers of commerce and industry from both sides and revitalising the Joint Business Council, will support this goal. Indian businesses view Qatar as a strategic hub for accessing West Asia and North Africa region and acknowledge its potential as a profitable investment destination. Qatar’s National Vision 2030, a comprehensive plan to diversify its economy beyond hydrocarbons, aligns seamlessly with India’s economic goals.
Qatar, like Oman before it, has shown interest in establishing a bilateral Comprehensive Economic Partnership Agreement (CEPA) with India, modelled after India’s CEPA with the UAE, which was negotiated in February 2022 in a record time of under three months. In a sense, this indicates a growing frustration among Gulf countries over delays in the ongoing India-GCC FTA negotiations. The discussions have been stalled by technicalities since their inception in August 2004, despite being resumed in November 2022, backed by efforts made at higher levels.
Bilateral cooperation in the health care sector intensified in the post-pandemic era. India is keen to expand its exports of pharmaceuticals and medical devices, while Qatar is keen on establishing tie-ups with India’s reputed super-speciality hospital chains. Likewise, both sides are keen to enhance cooperation in education, technology, and innovation, including emerging technologies, startups, and Artificial Intelligence. The operationalisation of India’s Unified Payments Interface (UPI) at Qatar National Bank (QNB) points of sale and the expansion of QNB’s presence in India highlight efforts to integrate financial systems and facilitate smoother business transactions.
With over 830,000 Indian expatriates contributing to Qatar’s economy, the diaspora remains a vital bridge between the two countries. It also significantly contributes to India’s economic development through annual remittances exceeding $4 billion. India applauded Qatar’s labour reforms, including a non-discriminatory minimum wage and streamlined grievance redressal systems. India extended e-visa facilities to Qatari nationals, facilitating tourism and business travel.
On the security side, both nations condemned cross-border terrorism and agreed to strengthen intelligence sharing, cybersecurity, and law enforcement cooperation, including anti-money laundering and cybercrime initiatives.
Qatar is uniquely positioned in West Asia due to its vast energy reserves and strategic location along vital maritime trade routes. India’s dependence on sea-based trade routes makes Qatar a valuable partner in ensuring maritime security. Qatar’s diplomatic outreach throughout West Asia strategically positions it as a neutral mediator in regional conflicts, offering opportunities for India to collaborate with this key nation while navigating the complexities of West Asian geopolitics.
The India-Qatar relationship illustrates how countries can overcome crises and challenges through pragmatic diplomacy, economic interdependence, and strategic patience.
Ausaf Sayeed is a former secretary to the Government of India, ministry of external affairs, and the former ambassador of India to Saudi Arabia, Yemen, and Seychelles. The views expressed are personal
