Qatar is a key partner in India's energy security and economic development. Its role in India's growth trajectory has only deepened over the years, making it an indispensable ally in the Gulf region.
Diplomatic Priorities: Modi’s Special Gesture
Diplomacy follows set protocols, and reciprocity often dictates diplomatic courtesies. In India, visiting Heads of State are usually received by a Cabinet Minister, Minister of State, or a senior bureaucrat. However, Prime Minister Narendra Modi made an exception by personally receiving the Emir of Qatar, Sheikh Tamim bin Hamad Al-Thani, during his state visit to India on February 17–18. This rare gesture underscored the high strategic importance India places on its relationship with Qatar.
The visit further cemented bilateral ties, which had already functioned as a de facto strategic partnership. Modi’s two previous visits to Qatar and his conferment with the country’s highest honor reflect the strong diplomatic and personal rapport between the two nations.
Strengthening Bilateral Relations Amid Challenges
Despite strong ties, a diplomatic hiccup occurred when eight former Indian Navy officers were detained on espionage charges. Their subsequent release and pardon by the Emir demonstrated the effectiveness of high-level diplomatic engagement and personal trust between the two leaders. This underscores the unique nature of Gulf diplomacy, where interpersonal relationships play a crucial role in fostering trust and cooperation.
India’s Support to Qatar During the Blockade
India has consistently advocated diplomacy and dialogue in resolving regional disputes. During the 2017–2021 Gulf blockade, when Qatar was isolated by its neighboring Arab states, India stood firm in its support. It ensured the uninterrupted supply of essential goods to Qatar, with Indian exports to the country surging by 83% in 2017 alone.
Today, India-Qatar trade fluctuates between $10 billion and $14 billion, with a mutual commitment to double this figure by 2030. The participation of Indian businesses and the large Indian workforce in Qatar’s economy further strengthens this partnership.
Expanding Economic and Trade Cooperation
India and Qatar have taken significant steps to enhance trade and economic cooperation, including discussions on a Free Trade Agreement (FTA). India’s success in implementing a Comprehensive Economic Partnership Agreement (CEPA) with the UAE serves as a model for future India-Qatar trade agreements.
Qatar's adoption of India's Unified Payments Interface (UPI) and the opening of a Qatar National Bank branch in GIFT City are expected to boost trade, investment, and tourism. Additionally, Qatar’s inclusion in India’s e-visa facility will further facilitate business and people-to-people exchanges.
Qatar’s Role in India’s Energy Security
Qatar plays a pivotal role in India’s energy sector, supplying over 70% of India’s natural gas (LNG and CNG) imports. In 2023, a 20-year agreement was signed with Petronet to supply 7.5 million tonnes of LNG annually from 2028, valued at $78 billion. This deal aligns with India's Viksit Bharat 2047 vision and its climate change commitments.
Investment and Infrastructure Development
Despite Qatar’s significant financial resources, its investments in India have been relatively modest, amounting to around $1.5 billion. However, the announcement of a $10 billion investment in India’s infrastructure sector signals a major shift. This investment will focus on key sectors such as:
- Infrastructure and logistics
- Technology and manufacturing
- Food security and hospitality
The signing of an MoU between Invest Qatar and Invest India will further streamline investment opportunities and cooperation.
Enhancing Financial and Trade Mechanisms
The Avoidance of Double Taxation Agreement, signed during the visit, provides added financial security and transparency. Additionally, the Joint Working Group on Trade and Commerce has been elevated to a Joint Commission on Trade and Commerce, which will be chaired by Commerce Ministers from both sides. This institutional mechanism will play a crucial role in reviewing and expanding economic cooperation.
Expanding Collaboration in Technology and Security
India and Qatar have identified healthcare, food security, cybersecurity, AI, space technology, and digital governance as key areas of future collaboration. Indian startups are also set to participate in Web Summits in Doha in 2024–25, fostering innovation and entrepreneurship.
Joint Efforts to Combat Terrorism and Extremism
A significant outcome of the visit was the commitment to counter terrorism in all forms, including cross-border terrorism. India has expressed concerns over the alleged support for extremist groups from Gulf-based charities. As a result, both countries have agreed to enhance real-time intelligence sharing to combat terrorism, radicalization, and extremism, which threaten global stability.
Qatar’s Regional Influence and India’s Strategic Interests
In recent years, Qatar has positioned itself as a key mediator in regional and global conflicts, including:
- Taliban negotiations in Afghanistan
- Gaza conflict involving Hamas and Israel
- Strategic involvement in Syria
Additionally, Qatar hosts the largest US military base in the region, a Turkish military base, and maintains strong relations with Iran. The visit provided an opportunity for India to exchange views on volatile regional dynamics while strengthening its strategic position.
Elevating India-GCC Engagement
Under Qatar’s chairmanship of the GCC, India has initiated a Foreign Ministers’ Dialogue and a Joint Action Plan. The establishment of a high-level mechanism led by Foreign Ministers further strengthens India’s engagement with Qatar, the GCC, and the broader Gulf region.
Conclusion: A Strengthened Partnership for the Future
Qatar’s significance in India’s energy security, trade, investment, and regional diplomacy has never been greater. The visit of Sheikh Tamim bin Hamad Al-Thani marked a new phase in the India-Qatar partnership, with strategic, economic, and security collaborations expanding across multiple domains. As India deepens its engagement in the Gulf, Qatar remains a crucial partner in India’s extended neighborhood, shaping the future of bilateral and regional cooperation
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