India-Qatar Partnership

The Amir of Qatar, Sheikh Tamim bin Hamad Al Thani, visited India from February 17-18, 2025, marking a significant step towards strengthening the bilateral ties between the two nations. This visit underscored the deepening relationship, with both countries agreeing to boost cooperation across various sectors, including trade, energy, and technology.

Key Highlights of the Visit

1. Strategic Partnership Agreement:

India and Qatar have upgraded their relationship to a "strategic partnership", setting an ambitious target to double their bilateral trade to USD 28 billion over the next five years. With this move, Qatar becomes the fifth member of the Gulf Cooperation Council (GCC) to formalize a strategic partnership with India, following agreements with the UAE, Saudi Arabia, Oman, and Kuwait.

2. Investment Commitments:

Qatar’s sovereign wealth fund has committed to a USD 1.5 billion investment in India, with an additional USD 10 billion earmarked for projects in infrastructure, renewable energy, and emerging technologies such as AI and machine learning. This demonstrates Qatar’s confidence in India’s economic potential and its growing tech-driven sectors.

3. Digital Integration with UPI:

The visit also saw the operationalization of India’s Unified Payment Interface (UPI) at Qatar National Bank (QNB) points of sale in Qatar, with plans for nationwide UPI acceptance in the country. This integration aims to make financial transactions easier for both Indian and Qatari citizens, showcasing India’s digital leadership and enhancing cross-border financial connectivity.

4. Bilateral Agreements:

During the visit, India and Qatar signed two agreements and five Memorandums of Understanding (MoUs), covering areas such as economic cooperation, youth affairs, and a double taxation avoidance agreement, further solidifying their diplomatic and economic ties.

Strategic and Economic Importance of India-Qatar Relations

1. Energy Cooperation:

Energy remains a cornerstone of the India-Qatar relationship. Qatar is India’s largest supplier of Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG), making energy cooperation a central pillar of their economic partnership. In February 2024, Qatar Energy and Petronet LNG signed a 20-year agreement to supply 7.5 million metric tonnes of LNG annually, starting in 2028, ensuring a long-term and stable energy supply for India.

2. Workforce and Remittance Channels:

India’s sizable workforce in Qatar, which constitutes around 25% of the country’s population, forms a vital bridge between the two nations. To facilitate smoother financial transactions for Indian workers, India is introducing UPI-based remittance solutions in Qatar, aiming to reduce costs and improve accessibility for the expatriate community. Additionally, agreements have been made to regulate labor conditions and enhance the welfare of Indian workers in Qatar, ensuring better protection and working conditions.

3. Food Security Cooperation:

Food security has been another key area of focus for India-Qatar ties. During the 2017 GCC blockade, India played a crucial role in supplying essential food items to Qatar through Oman, emphasizing India’s reliability as a food supplier. Qatar has recognized India’s potential in providing high-quality agricultural products at competitive prices, and discussions are ongoing to expand collaboration in agricultural investment. Qatar is particularly interested in leveraging India’s expertise in hydroponics, a technology for growing crops without soil, to enhance its food security.

Challenges in India-Qatar Bilateral Relations

1. Energy Security Concerns:

Although Qatar is India’s largest supplier of LNG, global energy price fluctuations and geopolitical uncertainties in the Gulf region present risks to the stability of long-term energy supply. Additionally, India’s growing commitment to renewable energy and its transition towards cleaner energy sources presents a challenge in balancing reliance on traditional fossil fuels like LNG with investments in sustainable energy.

2. Labor and Diaspora Issues:

The issue of labor rights for Indian workers in Qatar remains a significant concern. There are ongoing challenges related to wages, working conditions, and overall worker welfare. The success of the agreements on labor regulation depends on effective enforcement and monitoring mechanisms. Indian workers in Qatar often face difficult living and working conditions, and addressing these issues remains a sensitive but necessary task.

3. Food Security Vulnerabilities:

Qatar's reliance on food imports from India, while stable, is susceptible to risks such as supply chain disruptions or another regional blockade similar to the 2017 GCC crisis. These geopolitical tensions can affect the flow of essential food items, making it critical to diversify and strengthen the food security cooperation between both countries.

Way Forward for India-Qatar Relations

1. Enhancing Energy Cooperation:

India and Qatar should focus on expanding LNG agreements while also ramping up collaboration in the renewable energy sector, including hydrogen, solar, and wind energy. Qatar’s investment in India’s clean energy projects could support both nations in achieving their energy transition goals.

2. Strengthening Labor Welfare and Mobility:

To ensure the welfare of Indian workers, India-Qatar can work towards upgrading the Migration and Mobility Agreement, ensuring fair wages, labor rights, and social security benefits for workers. Additionally, UPI-based remittance systems will simplify financial transactions for expatriates, further supporting the Indian workforce in Qatar.

3. Fortifying Food Security Ties:

India and Qatar should prioritize food security by facilitating Qatari investments in Indian agricultural cooperatives and food processing industries to secure a stable food supply. Additionally, improving logistics and cold storage infrastructure would boost the efficiency of food exports and mitigate the risk of disruptions during geopolitical or supply chain crises.

In conclusion, the February 2025 visit of the Amir of Qatar has laid the foundation for a stronger, multifaceted partnership between India and Qatar. Both countries are set to deepen collaboration in key sectors, from energy and technology to workforce welfare and food security, while addressing challenges related to energy pricing, labor conditions, and geopolitical uncertainties. Through continued cooperation and investment, India and Qatar are poised to strengthen their strategic and economic ties for mutual growth and prosperity.