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The two-day visit of Qatar’s Emir Sheikh Tamim bin Hamad Al Thani to India has given a new direction to the bilateral relations between the two countries. In the high-level talks held between Prime Minister Narendra Modi and the Emir of Qatar at Hyderabad House, there was a special discussion on investment, trade, energy cooperation and strengthening strategic partnership.
The importance of this visit can be gauged from the fact that Prime Minister Modi broke protocol and went to the airport himself to welcome the Emir of Qatar. This made it clear how much priority India is giving to this relationship. Two major agreements were signed during this meeting.
- Agreement to further strengthen strategic partnership
- Double Taxation Avoidance Agreement. So that trade and investment between the two countries can be made more easy.
What will India and Qatar get from this visit?
What will India get?
- Energy security: Qatar is India’s largest LNG supplier, which provides 40% of India’s total requirement of liquefied natural gas (LNG). In this visit, an agreement was reached to make energy supply long-term and more stable. Qatar’s gas supply is extremely important for India’s energy needs for industrial development, power generation and transport sector.
- Investment and Trade: QIA (Qatar Investment Authority) is investing billions of dollars in India’s infrastructure, technology and startup sector. Qatar expressed its commitment to increase investment in India, which will boost employment and economic growth. The mutual agreements emphasized on removing barriers to facilitate trade policy. The total India-Qatar trade in 2018-19 was $ 10.95 billion, which has now increased to $ 14 billion and it is expected to increase further after this visit.
- Welfare of NRIs: About 8 lakh Indian expatriates are working in Qatar, who contribute significantly to Qatar’s economy. Also, these expatriates send more than four billion dollars of earnings to India. An agreement was reached on better cooperation between the Government of India and the Government of Qatar regarding the rights and security of Indian workers. Labor reforms were discussed for the welfare of Indian professionals and workers working in Qatar.
- Strategic and defense cooperation: India and Qatar agreed to further deepen defense and security cooperation. There was discussion on increasing cooperation in maritime security and anti-terrorism operations. Talks were held to further strengthen security and shipping cooperation in the Indian Ocean region.
What will Qatar get?
- Big and fast growing Indian market: India is one of the fastest growing economies in the world and is a major trading partner for Qatar. Qatar exports products like petrochemicals, fertilizers and aluminum to India. Qatar will get new investment opportunities in India, which will further strengthen the economic relations between the two countries. Currently, Qatar has invested $ 1.8 billion in India.
- Food security: Qatar imports 90% of its food requirements and India is a major partner in this. Rice, wheat, fruits and dairy products are exported from India to Qatar. In this visit, both the countries paid special attention to increasing food security cooperation.
- Indian talent and labor force: Indians have a big role in Qatar’s construction, health, education and IT sectors. Qatar needs more Indian professionals and skilled workers, which will increase human resource cooperation between the two countries.
- Strategic and defense cooperation: Cooperation will be strengthened at various levels to deepen defense ties between India and Qatar. Cyber security and intelligence partnership were also discussed.
Why are India-Qatar relations important?
India and Qatar’s relations are not limited to trade only, but it is based on important pillars of energy, security, investment and migrant welfare. Qatar is a major strategic partner of India in West Asia. Qatar’s role in maintaining India’s energy security is very important. A large number of Indian expatriates are employed in Qatar, which further strengthens the relationship between the two countries. Both countries will benefit from the growing opportunities for trade and investment.
