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India, Qatar elevate ties to strategic partnership, set $28 bn trade target

India, Qatar elevate ties to strategic partnership, set $28 bn trade target
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New Delhi: India and Qatar, on Tuesday, elevated their bilateral relationship to a strategic partnership during the state visit of Qatar’s Amir Sheikh Tamim Bin Hamad Al-Thani to New Delhi. The two nations set an ambitious target to double their bilateral trade from $14 billion to $28 billion over the next five years.

The two-day state visit began with Prime Minister Narendra Modi extending a rare gesture of personally receiving the Amir at Delhi airport with a warm embrace.

In the presence of the two leaders, India and Qatar signed two major agreements: one establishing the strategic partnership and another revising the Double Taxation Avoidance Agreement. Additionally, five memoranda of understanding were signed to bolster economic cooperation, facilitate archival management, and enhance collaboration in youth affairs and sports.

“The strategic partnership agreement actually elevates the present state of bilateral relationship to a strategic level. What we are looking at is deepening cooperation in fields of trade and energy security, as well as in regional and international fora,” said Arun Kumar Chatterjee, Secretary, Ministry of External Affairs, during a press briefing. He emphasised that the strategic partnership agreement will cover the “entire spectrum” of the bilateral relationship.

The visit comes at a crucial time, following a major energy deal signed in February 2024, where India secured a $78 billion agreement to extend LNG imports from Qatar for another 20 years until 2048. Strengthening the energy partnership further, Qatar Energy and Petronet LNG Limited signed an agreement for the supply of 7.5 million metric tonnes per annum of LNG from Qatar to India, starting 2028. These agreements reinforce Qatar’s position as a major source of LNG for India and highlight the growing energy security cooperation between the two nations.

The Qatar Investment Authority (QIA) has identified several key sectors for increased investment in India, demonstrating Qatar’s commitment to deepening economic ties. These sectors include infrastructure, ports, shipbuilding, renewable energy, smart cities, food parks, and emerging technologies such as artificial intelligence, robotics, and machine learning. This expansion builds upon Qatar’s previous commitment to invest $10 billion in various Indian sectors.

Addressing regional issues, both leaders engaged in detailed discussions about the ongoing situation in the Middle East, particularly the Israel-Hamas conflict. “Both sides conveyed their mutual positions that we have on the Israel-Hamas issue. India conveyed its own position, the Qatari side conveyed their own position and we exchanged views,” Chatterjee explained. The discussions also covered the situation in Afghanistan, emphasising the importance of regional stability.

While the strategic partnership agreement encompasses a broad spectrum of cooperation, defence was not an immediate priority. “At this moment, we are not talking about any kind of defence-related cooperation,” Chatterjee clarified when asked about security ties.

However, the talks acknowledged ongoing security cooperation, particularly in counter-terrorism and maritime security, and emphasised continued dialogue on these issues.

The visit addressed several humanitarian concerns, with Secretary Chatterjee revealing that around 600 Indians are currently in Qatari jails. He noted the positive development that the Qatari leadership has been showing clemency, with 85 Indians receiving pardons in 2024. The two nations are currently awaiting Qatar’s ratification of the transfer of sentenced persons agreement, which would provide a framework for handling such cases.

Ambassador Vipul provided important updates on labour-related matters, confirming that a joint working group mechanism is in place to address concerns regarding the working conditions of Indian labourers in Qatar. The last meeting of this group took place recently, with no significant issues raised regarding workers’ conditions. He also clarified that there are no Guru Granth Sahibs currently in Qatari custody, noting that a previous issue regarding two swarups was resolved last year with one being returned.

The elevation of ties comes as both nations commemorate 50 years of diplomatic relations, celebrated in 2023. The high-level delegation accompanying the Amir included Qatar’s Prime Minister and Minister of Foreign Affairs, Sheikh Mohammed Bin Abdulrahman Al Thani, along with ministers of commerce and industry, energy, electronics and information technology, labour, and the Minister of State for foreign trade. CEOs of several top Qatari entities, including Qatar Investment Authority and Qatar Tourism, were also part of the delegation, highlighting the strong business focus of the visit.

A Joint Business Forum was held during the visit, bringing together top industrialists, companies, and institutions from both countries for productive interactions. The forum provided a platform for business leaders to explore opportunities and strengthen commercial ties between the two nations.

The state visit included formal ceremonies, with President Droupadi Murmu welcoming the Amir at the Rashtrapati Bhavan, where he was accorded a ceremonial guard of honour. The visit concluded with a banquet reception hosted by President Murmu in honour of the Amir and his delegation.

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