Context:
Prime Minister Narendra Modi and the Amir of Qatar, Sheikh Tamim Bin Hamad Al-Thani, recently held talks in New Delhi on February 18, 2025, where they agreed to elevate India-Qatar relations to a "strategic partnership."
Key Issues Discussed by both leaders:
1. Strategic Partnership: Both leaders decided to elevate the relationship between the two nations to a strategic partnership, emphasizing cooperation in sectors like trade, energy, technology, and cultural exchange.
2. Bilateral Cooperation: The discussions focused on promoting investments, accelerating talks on an investment protection pact, and ensuring that both nations benefit mutually in sectors like energy and innovation.
3. Double Taxation Avoidance Agreement: A revised agreement for the avoidance of double taxation and prevention of fiscal evasion was exchanged between India and Qatar. This is expected to facilitate trade and investment between the two countries.
Importance of Qatar for India
India-Qatar Economic Ties: The economic relationship between the two countries is significant, with trade standing at around $20 billion. Qatar is the largest supplier of LNG and LPG to India, while India exports a variety of goods, including cereals, iron and steel, and textiles. Both sides are keen to diversify and expand their trade beyond energy.
Security and Defense Cooperation: In addition to trade, India and Qatar share strong defense ties. India has provided training opportunities in its defense institutions to Qatar and also participates in major defense exhibitions in Doha.
Cultural and People-to-People Ties: The large Indian expatriate community in Qatar, which plays a significant role in the country's development, was also acknowledged, highlighting the importance of people-to-people ties between the two nations. With over 800,000 Indians living and working in Qatar, including many in high-skill professions, their contributions to the country’s development are highly valued.
About Diplomatic relations between India and Qatar
Qatar and India established diplomatic relations in 1973. Since then, both countries have engaged in a spectrum of relationships including political, economic, defence, and cultural relations.
The two countries signed a maritime defense agreement in 2008, with joint defense exercises like the Za’ir-Al-Bahr held since 2019, focusing on counter-terrorism and maritime security.
Qatar has made significant investments in India, particularly in the energy sector, and agreed to lower gas prices in 2016. Bilateral trade has grown, with India exporting goods like cereals and machinery, while Qatar exports oil and plastics to India.
Future Prospects:
India-Qatar relations are poised to grow, especially in areas like energy, defense, and technology, with both countries looking to leverage their strengths for mutual benefit.
Conclusion:
The visit by the Amir of Qatar and the subsequent talks with PM Modi underscore a commitment to deepening the India-Qatar partnership. This strategic partnership aims to boost the economic and geopolitical ties between the two nations. This development holds the promise of greater collaboration in critical sectors, setting the foundation for a prosperous future of bilateral relations.
