Qatar has reaffirmed its commitment to invest $10 billion in India, representing a pivotal advancement in strengthening the economic relations between the two countries, according to a joint statement from India’s Prime Minister’s Office. This announcement followed high-level talks between Prime Minister Modi and the Amir of Qatar, Sheikh Tamim bin Hamad Al Thani, during the Amir’s two-day visit to New Delhi that commenced on Monday.
Prime Minister Modi shared his excitement on X, stating, “Had a very productive meeting with my brother, Amir of Qatar H.H. Sheikh Tamim bin Hamad Al Thani, earlier today. Under his leadership, Qatar has scaled new heights of progress. He is also committed to a strong India-Qatar friendship. This visit is even more special because we have elevated our ties to a Strategic Partnership.”
Qatar commends India’s investment environment
The Qatari delegation praised India’s initiatives in promoting a favorable environment for Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII), underscoring the nation’s positive strides in enhancing the ease of doing business and creating a welcoming climate for investors.
“The Qatar side commended the steps taken by India in making a conducive environment for Foreign Direct Investment and Foreign Institutional Investment and expressed interest to explore investment opportunities in different sectors, including infrastructure, technology, manufacturing, food security, logistics, hospitality, and other areas of mutual interest. In this regard, the Qatar side announced a commitment to invest $10 billion in India,” the statement elaborated.
Doubling trade and expanding investment
A key takeaway from the meeting was the agreement to double bilateral trade from the current $14 billion to $28 billion within the next five years. Furthermore, Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), which presently holds $1.5 billion in foreign direct investment (FDI) in India, has pledged an additional investment of $10 billion. Sectors that will benefit from Qatar’s existing investments in India encompass retail, power, IT, education, healthcare, and affordable housing. This increased investment is anticipated to further boost economic cooperation between the two nations.
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Exploring a Free Trade Agreement
Discussions also covered the potential negotiation of a Free Trade Agreement (FTA) between India and Qatar, which could enhance trade opportunities and deepen their economic ties. This initiative aligns with India’s broader strategy to strengthen trade relations with Gulf Cooperation Council (GCC) countries, having already established strategic partnerships with the UAE, Saudi Arabia, Oman, and Kuwait.
Bilateral agreements and MoUs signed
Sheikh Al Thani’s second visit to India culminated in the signing of two agreements and five Memorandums of Understanding (MoUs). These agreements encompass various sectors, including economic cooperation, youth affairs, and the avoidance of double taxation, further solidifying the foundation of the strategic partnership. Arun Chatterjee, Secretary in the Ministry of External Affairs, shared with reporters, “Trade, investment and energy were among the major topics of discussion between the two leaders today. The trade today between India and Qatar is about US $14 billion annually. Both sides have agreed to set a target to double this in the next 5 years.”
Strengthening ties within the GCC
Qatar’s decision to elevate its relationship with India aligns it with other GCC nations that have already formed strategic partnerships with India. This progression is expected to unveil new opportunities for collaboration in trade, energy, and investments, reinforcing India’s expanding economic influence in the Gulf region. As India and Qatar advance their strategic partnership, the emphasis will remain on facilitating investments, enhancing trade, and nurturing long-term economic collaboration, marking a new phase in their diplomatic and economic relations.
