India, Qatar aim to double trade to $28 billion over next five years

New Delhi: Prime Minister Narendra Modi and Amir of Qatar, Sheikh Tamim bin Hamad Al-Thani, on Tuesday set the target to double the annual bilateral trade within the next five years to take it to the level of at least $28 billion, even as the West Asian nation vowed to invest $10 billion in India.

As Modi and Sheikh Tamim met in New Delhi, India and Qatar raised the bilateral relations to a strategic partnership and agreed to explore the possibility of signing a bilateral Comprehensive Economic Partnership Agreement.

The two leaders exchanged views on regional and international issues of mutual interest, including the security situation in the Middle East. They emphasised the importance of dialogue and diplomacy for a peaceful resolution of international disputes.

“Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages. Our nations can also work closely in sectors like energy, technology, healthcare, food processing, pharma and green hydrogen,” Modi posted on X after meeting Sheikh Tamim at the Hyderabad House in New Delhi. Sheikh Tamim’s office quoted him saying that India was one of the most important economic partners of Qatar.

India’s bilateral trade with Qatar was worth $14.08 billion in 2023-24. India’s export to Qatar during the period was $1.7 billion and India’s import from Qatar was $12.38 billion. Qatar is the largest supplier of LNG to India, accounting for over 40 per cent of India's global imports. India’s Petronet LNG Ltd signed a long-term deal with QatarEnergy LNG in February 2024 for the supply of 7.5 million tonnes of gas per annum starting from 2028 until 2048.

The Prime Minister and the Amir of Qatar agreed that the two sides should work to further enhance bilateral energy cooperation, including through the promotion of trade and mutual investments in energy infrastructure and regular meetings of the relevant stakeholders from both sides, including the Joint Task Force on Energy.

The two sides agreed on the need to explore strategies for enhanced and diversified trade between the two countries and address priority market access issues related to trade in goods and services, according to a joint statement issued after the meeting between the two leaders. It added, “The two sides agreed to explore the possibility of entering into a bilateral Comprehensive Economic Partnership Agreement. Both sides set the target to double bilateral trade by 2030.”

India is also keen to speed up its negotiations with the Gulf Cooperation Council, comprising Kuwait, Bahrain, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, for a Free Trade Agreement. The GCC is currently India’s largest trading partner bloc with bilateral trade reaching $ 161.59 billion in 2023-24. The six-nation bloc accounts for 15.8 per cent of the total trade of India, more than the European Union. India started negotiations with the GCC for an FTA in 2022.

Modi was joined by Sheikh Tamim on Tuesday in unequivocally condemning terrorism in all its forms and manifestations, including cross-border terrorism. The two sides agreed to cooperate in combating this menace through bilateral and multilateral mechanisms. They agreed to enhance cooperation in information and intelligence sharing, developing and exchanging experiences, best practices and technologies, capacity building and to strengthen cooperation in law enforcement, anti-money laundering, drug trafficking, cybercrime and other transnational crimes.

The two leaders also discussed ways and means to promote cooperation in cybersecurity, including the prevention of the use of cyberspace for terrorism, and radicalisation and for disturbing social harmony. They emphasized the importance of holding regular meetings of the Joint Committee on Security and Law Enforcement, according to the joint statement issued after the meeting.

They agreed to explore the settlement of bilateral trade in respective currencies. The Qatar National Bank is set to open an office in GIFT City in Gujarat.

The Qatar Investment Authority, the sovereign wealth fund of the West Asian nation, currently has about US $1.5 billion FDI in India in sectors like retail, power, IT, education, health and affordable housing, Arun Kumar Chatterjee, Secretary at the Ministry of External Affairs, said. The joint statement referred to Qatar’s latest commitment to invest $10 billion in India.

Sheikh Tamim arrived in New Delhi on Monday for a two-day visit. Modi made a rare gesture and drove to the airport to receive the Amir of Qatar.