India and Qatar Elevate Bilateral Relations to Strategic Partnership, Aim to Double Trade by 2030

India and Qatar Forge Strategic Partnership, Aim to Double Trade by 2030

In a significant development, India and Qatar have upgraded their bilateral relations to a “strategic partnership,” with a focus on enhancing trade, investments, technology, energy, and people-to-people ties. The two countries have set an ambitious target to double their trade by the year 2030.

During the official visit of Emir of Qatar Sheikh Tamim bin Hamad Al Thani to New Delhi, a series of agreements were signed, marking his second state visit to India. Prime Minister Narendra Modi personally welcomed the Qatari leader upon his arrival in the Indian capital, referring to him as “my brother” in a post on social media.

The discussions between the two leaders encompassed key areas of cooperation such as economic partnership, energy collaboration, and space technology. Currently, the trade between India and Qatar stands at around $20 billion, with the Indian Foreign Ministry projecting it to reach approximately $28 billion in the next five years.

One of the significant agreements signed during the visit was a revised pact to avoid double taxation and prevent fiscal evasion with respect to taxes. This agreement is seen as a crucial step towards establishing a free trade agreement between the two nations.

Qatar holds a pivotal position as India’s largest supplier of liquefied natural gas (LNG), accounting for over 48% of India’s global LNG imports. In the fiscal year 2022-23, Qatar supplied 10.74 million metric tons of LNG to India, valued at $8.32 billion. Additionally, Qatar is also the largest supplier of liquefied petroleum gas (LPG) to India, accounting for 29% of the country’s total LPG imports.

The visit of the Qatari leader included participation in a bilateral business forum to strengthen trade ties, as well as meetings with top officials from the Indian Oil Corporation to explore collaboration in areas such as artificial intelligence, LNG, sustainability, and carbon capture initiatives.

This visit comes on the heels of Prime Minister Modi’s trip to Washington, where he signed an energy deal with US President Donald Trump. India aims to increase its purchase of US energy by two-thirds to $25 billion in the near future, highlighting the country’s efforts to diversify its energy sources.

As India continues to strengthen its partnerships with key energy suppliers like Qatar and the US, the landscape of global trade and energy dynamics is set to witness significant shifts in the coming years.