Beyond LNG: Unlocking New Trade Avenues in India Qatar Relations

Introduction

For decades, India Qatar relations have been dynamic and primarily shaped by energy trade. However, new investment, trade, and cooperation avenues emerge as both nations look beyond traditional sectors. 

With Qatar’s Emir, Sheikh Tamim bin Hamad Al Thani, making a historic visit to India in February 2025 after nearly a decade, the focus is on strengthening economic ties, signing new agreements, and fostering a broader partnership beyond energy.

With bilateral trade valued at $14.08 billion in FY 2023-24, Qatar remains a vital trade partner for India, particularly as the largest supplier of liquefied natural gas (LNG). Meanwhile, India has been expanding its footprint in Qatar’s markets, exporting goods worth $1.7 billion while importing $12.38 billion from the Gulf nation.

But what does the future hold for this India Qatar economic partnership? 

The Backbone of India Qatar Trade: Energy & Investments

LNG Dominance & Future Deals

One of the defining aspects of India-Qatar trade relations is LNG. Qatar supplies over 40% of India’s LNG imports, making it an indispensable energy partner. In February 2024, QatarEnergy and India’s Petronet LNG signed a long-term deal extending LNG supply agreements from 2028 to 2048, securing India’s energy needs for the next two decades.

Qatar is a significant crude oil, petrochemical, and LNG exporter to India. In return, Indian companies like ONGC Videsh have explored upstream investment opportunities in Qatar’s energy sector, indicating a two-way strategic partnership. In recent developments, Petronet LNG Ltd, India’s leading LNG importer, signed a long-term deal with Qatar Energy to procure 7.5 million tonnes of LNG annually from 2028 to 2048. This agreement secures a steady energy supply for India and signifies deepening economic ties between the two nations. indianembassyqatar.gov.in 

Investment & Infrastructure Partnerships

Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA), has invested over $5 billion in India across real estate, infrastructure, and technology. This includes significant stakes in:

• Adani Transmission
• Retail & logistics startups like Flipkart
• Renewable energy projects

Qatar is looking to diversify its investments after the 2022 World Cup, and India remains a lucrative destination, particularly in infrastructure and digital transformation.

India’s Export Profile: Expanding Trade Beyond Energy

While hydrocarbons dominate India’s imports from Qatar, India’s exports to Qatar have diversified over the years. The key sectors include India’s exports to Qatar, encompassing a diverse range of products, reflecting the country’s manufacturing and agricultural capabilities. Key export commodities include:

• Cereals: India supplies a significant portion of Qatar’s cereal imports, catering to the dietary staples of the Qatari population.
• Copper and Articles of Iron and Steel: These materials are essential for Qatar’s infrastructure projects, especially in preparation for global events and urban development.
• Vegetables, Fruits, and Spices: India’s diverse agricultural sector provides a variety of fresh produce and spices, aligning with Qatar’s culinary preferences.
• Processed Food Products: The export of ready-to-eat meals and packaged foods caters to the convenience food market in Qatar.
• Electrical Machinery and Equipment: India’s growing electronics industry supplies various electrical components and machinery to Qatar.
• Plastic Products include household items and industrial-use plastics, meeting diverse consumer and commercial needs.
• Construction Materials: With Qatar’s rapid infrastructural development, tiles, sanitary ware, and fittings are in high demand.
• Textiles and Garments: India’s rich textile heritage offers a range of garments and fabrics appealing to both traditional and contemporary fashion markets in Qatar.
• Chemicals: Industrial chemicals and dyes from India support Qatar’s manufacturing sectors.
• Precious Stones and Jewelry: India exports diamonds and crafted jewelry, catering to Qatar’s luxury market.
• Rubber Products: These include automotive parts and other industrial rubber goods.

Top Indian Exports to Qatar (2018-24) 

While India’s exports to Qatar have declined slightly (from $1.99 billion in 2018 to $1.7 billion in 2024), there is substantial room for growth, particularly in engineering goods, digital services, and construction materials.

Opportunities for Growth

1. Pharmaceuticals & Healthcare: With Qatar expanding its healthcare sector, India’s generic drug manufacturers can play a significant role. Indian hospital chains like Apollo and Fortis are exploring Qatar-based operations.
2. Digital & IT Services: India’s IT firms, including TCS, Infosys, and Wipro, already serve Qatar’s banking and telecom sectors. AI, cybersecurity, and fintech collaborations are next in line.
3. Infrastructure & Smart Cities: Qatar’s real estate boom presents opportunities for Indian construction companies and raw material exporters.
4. Renewable Energy & Green Hydrogen: With both countries committed to carbon neutrality, partnerships in solar energy and green hydrogen are promising areas of collaboration.

What can you expect from the Qatar Emir’s visit?

Emir Sheikh Tamim Bin Hamad Al-Thani’s state visit to India on February 17-18, 2025, marks a significant milestone in bilateral relations. Nearly a decade after his last trip, this visit underscores the commitment to enhancing cooperation in the energy, trade, and investment sectors. 

The high-level delegation accompanying the Emir aims to explore new avenues for collaboration, particularly in technology and infrastructure development.

This visit follows Prime Minister Narendra Modi’s trip to Doha in February 2024, which was instrumental in resolving the detention of eight Indian Navy personnel in Qatar. Such diplomatic engagements reflect the resilience and depth of the India-Qatar partnership.

Key areas of India Qatar discussion include:

• Renewed LNG contracts, ensuring price stability and supply security for India.
• Enhanced investment ties, particularly in fintech, edtech, and e-commerce.
• Strengthening the bilateral air transport agreement will increase direct flights between Indian cities and Doha.
• Defense & security cooperation, focusing on naval and cybersecurity ties.

Indian Diaspora in Qatar

The Indian community in Qatar, numbering over 700,000, plays a vital role in strengthening bilateral ties. As the largest expatriate group in Qatar, Indians contribute significantly to the nation’s development across various sectors, including medicine, engineering, finance, and education. Their presence enhances economic collaboration and fosters cultural and people-to-people connections between the two countries. chamberindia.org

Conclusion

The India-Qatar relationship is a testament to strategic economic collaboration underpinned by historical ties and mutual respect. As both nations navigate the complexities of the global economy, their partnership serves as a cornerstone for regional stability and prosperity. With ongoing efforts to diversify trade and investment portfolios, the future of India-Qatar relations promises sustained growth and shared success. 

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