India-Qatar

The Amir of Qatar, Tamim bin Hamad Al Thani, visited India last week(February 17-18, 2025). Qatar  is a tiny West Asian kingdom.  

During the visit, an Agreement for Establishment of Strategic Partnership between India and Qatar signed. Both sides agreed to further expand cooperation in areas like energy, power, petrochemicals, investments, infrastructure development, education, culture, health, IT, innovation and start-ups. Seven Agreements / MOUs signed during the visit, in the following areas.

• Establishment of Strategic Partnership.
•  Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income.
•  Financial and Economic Cooperation between the respective Ministry of Finance.
•  Cooperation(COP) in the field of Youth Affairs and Sports.
•  COP in the field of Documents and Archives.
•  Cooperation between Invest India and Invest Qatar.
•  Cooperation between Confederation of Indian Industry and Qatar Business Association.

LEARNING FROM HOME/ WITHOUT CLASSES/BASICS

Qatar is the fifth richest country in terms of per capita GDP and is home to the world’s largest natural gas field.(LNG). An existing India-Qatar contract for the supply of 7.5 million tonnes per annum of LNG recently extended for another 20 years with effect from 2028. A $10-billion investment plan announced during the visit. Foreign direct investments of $1.5 billion already been made by the Qatar Investment Authority in a wide range of areas, including retail, power and information technology. As for bilateral trade, expected to rise from $14 billion currently to $28 billion over the next five years. Bilateral relations upgraded to a strategic partnership. It becomes the fifth Gulf country with which India has developed this relationship

India and  Gulf partners unveiled the India-Middle East Economic Corridor (IMEEC) in September 2023, it bypassed Qatar. Qatar is its second largest trading partner, with bilateral trade of about $14 billion in 2024.

INDIA AND WEST ASIA

                With ties largely remaining energy-based, much diversification in other areas is happening. More than 50% of India’s energy imports supplied by the Arab countries. West Asia is an important region due to its geographical location and abundance of natural resources.

Today, these countries see India as the potential partner to achieve their aspirations. For these economies, India is the preferred partner for investment. Saudi Arabia which is the fourth largest trade partner of India has promised an investment of $100 billion in India in sectors like petrochemicals, infrastructure, manufacturing, mining. Even UAE has planned to invest $7 billion in food corridor in India.

Saudi Arabia and the UAE are going to jointly develop the world’s largest greenfield refinery in Maharashtra, India. Both West Asian countries have pledged to invest in India in the areas of infrastructure, petrochemical, refining, minerals, and mining. In addition, in 2019 DP World Dubai agreed to invest in the construction of the $10 billion Mumbai-Pune hyperloop project. The region’s investors are also showing confidence in Indian startups. Security cooperation has also become an important focal point in India-West Asia relations, with cooperation on counterterrorism, cybersecurity, terror financing, money laundering, and securing sea lines of communication. India and Saudi Arabia will be conducting their first joint naval exercise in December 2019. CEPA or Comprehensive Economic Partnership Agreement signed by UAE and India on 18 February 2022.

                    India’s primary interest in West Asia is its willingness to coordinate with the major regional and extra-regional players for stability and security of the Gulf region.

The stability and security of the Gulf region and the Indian subcontinent closely interlinked. From an Indian perspective, the main challenges to regional stability include. India is also carefully watching the developments in Yemen. South Asia is also facing serious challenges, including terrorism and radicalisation. Cyber security and maritime security are other major issues in the region.

                Developments the ongoing civil war in Syria, US-Iran hostility and the Palestine issue have given space for the formation of positive relations between India and Saudi Arabia given the Kingdom’s role and influence in West Asia and India’s relevance in South Asian geopolitics. Saudi-Iran rivalry, which destabilizes West Asia is the major impediment