• Prime Minister Narendra Modi held wide-ranging talks with Amir of Qatar Sheikh Tamim Bin Hamad Al-Thani on February 18. 

• India and Qatar elevated their relationship to a ‘Strategic Partnership’ and agreed to double bilateral trade to $28 billion over the next five years.

• The two sides also signed five MoUs to strengthen economic partnership, step up ties in areas such as management of archives and cooperation in youth affairs and sports.

• The Amir of Qatar’s two-day visit comes at the invitation of Modi. This is his second state visit to India. He earlier visited India in March 2015.

Highlights of the meeting:

• The two sides reaffirmed their commitment to further strengthen the bilateral relations through regular and structured cooperation in all areas, including political, trade, investment, security, energy, culture, education, technology, innovation, sustainability and people-to-people ties. 

• In this regard, the two sides expressed happiness at the signing of the revised Double Taxation Avoidance Agreement and also agreed to expedite negotiations on the India-Qatar Bilateral Investment Treaty.

• The Indian side welcomed the decision of Qatar Investment Authority (QIA) to open an office in India. 

• The two sides noted that trade and commerce has been a strong pillar of bilateral economic cooperation between the two countries and emphasized on the potential for further growth and diversification in bilateral trade. 

• The two sides welcomed the elevation of the existing Joint Working Group on Trade and Commerce into a Joint Commission on Trade and Commerce. 

• The Joint Commission will be an institutional mechanism to review and monitor the entire spectrum of economic ties between the two countries and will be headed by the Ministers of Commerce and Industry on both sides.

• The two sides welcomed the operationalisation of India’s Unified Payment Interface (UPI) in QNB’s Points of Sales in Qatar and looked forward to implement nation-wide roll-out of UPI acceptance in Qatar. 

The following documents were signed/exchanged during the visit:

i) Agreement on the Establishment of Bilateral Strategic Partnership.

ii) Revised Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and its Protocol.

iii) MoU between Ministry of Finance, India and Ministry of Finance, Qatar on Financial and Economic Collaboration.

iv) MoU on Cooperation in Field of Youth and Sports.

v) MoU for Cooperation in the field of Documents and Archives.

vi) MoU between Invest India and Invest Qatar.

vii) MoU between Confederation of Indian Industry and Qatari Businessmen Association.

Geopolitical & Strategic Importance of the Partnership

i) Economic & Trade Impact

• India’s Gateway to Gulf Trade: Qatar is part of the Gulf Cooperation Council (GCC), India’s largest trading bloc with over $154 billion in trade (2021-22).

• The Strategic Partnership agreement ensures preferential trade benefits, facilitating more FDI, joint ventures, and technology exchange.

ii) Energy Security & Supply Chain Stability

• India heavily depends on Qatar’s LNG supplies. The Strategic Partnership agreement ensures long-term supply agreements, securing affordable and stable energy prices.

iii) West Asia Policy & Strategic Alignment

• Strengthening ties with Qatar enhances India’s outreach to the Gulf & Arab world. Counters China’s increasing economic & infrastructure footprint in West Asia.

(The author is a trainer for Civil Services aspirants.)