India and Qatar Ink Landmark MoUs to Strengthen Economic Partnership
- MGMMTeam
- Feb 19
- 4 min read
In a major step towards enhancing bilateral ties, India and Qatar signed two crucial Memorandums of Understanding (MoUs) on Tuesday, ushering in a new chapter in their enduring partnership. The agreements, formalized in the presence of Union Minister of Commerce and Industry, Piyush Goyal, and Qatar's Emir, Sheikh Tamim Bin Hamad Al-Thani, aim to bolster cooperation across multiple sectors.
The MoUs were concluded at the India-Qatar Business Forum, organized by industry body CII. Minister Goyal emphasized that India and Qatar are not rivals but rather complement each other in key areas such as energy, technology, and entrepreneurship. He also conveyed confidence in their mutual potential for success, stating, “Qatar will bring to the table what it can do best, and India will contribute similarly.”
This partnership emerges at a time when nations worldwide, including India, are emphasizing self-reliance and the localization of industries. Goyal highlighted these transformations as opportunities for shared growth, with both countries leveraging their unique strengths. He also acknowledged Qatar’s vital support for India, especially during the COVID-19 pandemic, as a key factor in their strong bilateral ties.
Rare Gesture
The Emir’s visit to India, his second state trip, is accompanied by a notable gesture of hospitality from Prime Minister Narendra Modi. In an uncommon move, Modi personally received Sheikh Tamim at the New Delhi airport on Monday evening.
In a tweet, the Prime Minister conveyed his excitement about the visit, describing it as a valuable opportunity to strengthen the diverse partnership between India and Qatar.
“We are two countries who can work together for a better future, for more prosperity and well-being of our people,” Goyal emphasized the prospects for increased trade and investment between the two nations.
The Emir’s two-day state visit features high-level meetings with Indian President Droupadi Murmu and Prime Minister Narendra Modi, aiming to strengthen cooperation in trade, energy, technology, and people-to-people ties. Accompanying him is a delegation of key Qatari ministers, officials, and business leaders, highlighting the visit’s strategic significance.
India and Qatar have deepened their ties in recent years, particularly in trade, energy, and technology. With the largest expatriate community in Qatar, India remains integral to the country’s growth. Looking ahead, both nations will prioritize sustainability and innovation, with a strong emphasis on entrepreneurship and the energy sector.
Strengthening India-Qatar Relations Through Strategic Partnerships
India and Qatar have formalized a strategic partnership during Amir Al Thani’s visit, marking a major step in their ties. Qatar pledged a $10 billion investment in India across key sectors, with plans to open a Qatar Investment Authority office. Both nations aim to double trade by 2030.
Under PM Modi, India’s Gulf relations have deepened beyond energy trade to strategic collaboration. His personal diplomacy, including breaking protocol to greet Gulf leaders, has strengthened these bonds. The partnership also signals Qatar’s commitment to India despite internal pressures, reinforcing cooperation without conditions.
Expanding Trade and Investments
Bilateral trade between India and Qatar stands at $14.08 billion. India imports LNG, LPG, chemicals, and petrochemicals from Qatar, while exporting cereals, machinery, textiles, and various other goods to the Gulf nation.
Qatar has made substantial investments in India, contributing over $1.5 billion in foreign direct investment (FDI) across sectors like telecom, education, and healthcare. Notable recent investments by the Qatar Investment Authority (QIA) include $1 billion in Reliance Retail Ventures and $140 million in Shriram Housing Finance Ltd.
Energy Cooperation
Energy is a key sector of cooperation between Qatar and India. Qatar is India's largest supplier of LNG and LPG, accounting for 46% of India's LNG and 26% of its LPG imports in FY 2023-24.
In February 2024, QatarEnergy signed a new agreement with India's Petronet LNG, extending their contract until 2048 with a deal worth $78 billion. This partnership is instrumental in supporting India's efforts to expand natural gas consumption and decrease reliance on crude oil.
Security Cooperation
The strategic partnership carries substantial significance for security and counterterrorism. In their joint statement, both nations strongly denounced terrorism in all its forms and outlined plans to strengthen collaboration in intelligence sharing, law enforcement, and the fight against transnational crimes like money laundering and cybercrime.
Qatar's role as a key mediator with terror groups is particularly valuable to India, given the security challenges in its region.
Strategic Importance
Qatar’s alliance with the US enhances the geopolitical significance of its partnership with India. Hosting the largest US military base in the Middle East, Qatar plays a crucial role in regional dynamics, and closer ties with the country strategically position India within the broader geopolitical framework.
Moreover, as India solidifies its presence within the Gulf Cooperation Council (GCC), its strategic collaboration with Qatar strengthens its regional influence. India is also in negotiations for a free trade agreement (FTA) with the GCC, opening the door for potential further trade agreements with Qatar.
Technological Cooperation
The two nations have pledged to enhance collaboration in emerging technologies, a key element of their deepening strategic partnership.
This alliance represents a significant milestone in India’s foreign relations, fostering greater economic, security, and technological cooperation, positioning both countries to strengthen their ties in the years ahead.
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