New Delhi: The upcoming state visit of the Amir of Qatar, Sheikh Tamim bin Hamad Al Thani, to India on February 17-18, 2025, marks yet another pivotal moment in the deepening ties between the two nations. This visit underscores the commitment of both countries to enhance cooperation across various sectors, including trade, energy, and cultural exchange.
The agenda during the Amir’s visit is expected to encompass deliberations on economic collaboration, defence cooperation, and energy security. Given Qatar’s influential role in West Asia and India’s growing global presence, this visit is anticipated to pave the way for collaborative efforts in regional stability and development.
“India and Qatar have deep-rooted historical ties of friendship, trust and mutual respect,” the Ministry pf External Affairs stated in a press release while announcing the Amir’s visit. “In recent years, the ties between the two countries including in the areas of trade, investment, energy, technology, culture and people-to-people ties have continued to strengthen.”
The visit of the Amir comes after a preparatory visit to Qatar by External Affairs Minister S Jaishankar in December 2024-January 2025. This was Jaishankar’s first diplomatic visit abroad in the new year.
The visit of the Amir comes amid New Delhi’s Look West Policy that advocates the expansion and extension of India’s relations with West Asian countries. This will be Amir Al-Thani’s second state visit to India after 2015.
India and Qatar have cultivated a robust bilateral relationship encompassing economic, political, defence, and cultural dimensions. This partnership has gained added significance in the context of regional developments, such as the Israel-Hamas conflict in Gaza.
Energy cooperation
Qatar is the largest supplier of LNG to India, accounting for over 40 per cent of India’s global LNG imports. Besides LNG, India also imports ethylene, propylene, ammonia, urea and polyethylene from Qatar. Therefore, the balance of trade continues to be heavily in Qatar’s favour.
A long-term contract LNG Sale and Purchase Agreement was signed on February 6, 2024, during the visit of Qatar’s Minister of State for Energy Affairs Engineer Saad bin Sherida Al Kaabi to India to participate in the India Energy Week 2024. The deal stipulates a 7.5 MMTPA supply by Qatar Energy to Petronet LNG for 20 years starting in 2028.
“India is trying to phase out coal as an energy source,” R Dayakar, former Indian Ambassador to Iraq and Jordan, who also served in the West Asia desk of the Ministry of External Affairs, told ETV Bharat. “The supply of LNG from Qatar is needed to meet India’s climate goals.”
Dayakar said that Qatar does not face any international sanctions.
“As such, we have a smooth run when it comes to gas supplies,” he said. “Qatar remains a dependable source.”
Bilateral trade and investments
Trade and investment form the cornerstone of India-Qatar relations. India's bilateral trade with Qatar in 2023-24 stood at $14.08 billion. India’s export to Qatar during the period was $1.7 billion and India’s import from Qatar was $12.38 billion. Qatar’s key exports to India include LNG, LPG, chemicals and petrochemicals, fertilisers, plastics, and aluminium articles, while India’s key exports to Qatar include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, processed food products, electrical and other machinery, plastic products, construction materials, textiles and garments, chemicals, precious stones and rubber.
There are over 15,000 big and small Indian companies operating in Qatar, wholly owned and joint ventures. Indian companies are today pursuing collaborations in various sectors like infrastructure, communications and information technology, energy and other areas in Qatar.
According to Harsh V Pant, Professor of International Relations with King’s India Institute at King’s College London and Vice-President (Studies and Foreign Policy) at the Observer Research Foundation think tank, Qatar is also investing in India in various sectors.
“There is healthy competition between the countries of West Asia when it comes to investments in India,” Pant said.
In January 2019, QIA invested $200 million through a primary equity issuance in Bharti Airtel’s arm Airtel Africa. In July of the same year, BYJU’s Edutech firm received an investment of $150 million led by QIA. In February 2020, QIA invested about $450 million for a 25.1 per cent stake in a unit of Adani Transmission Limited. The deal includes a subordinated debt investment by QIA, according to the filing, which said the two sides have signed a definitive agreement.
In February 2021, QIA invested $100 million in Verse Innovation, the parent company of vernacular news aggregator Dailyhunt and maker of short video entertainment app Josh, along with Glade Brook Capital Partners. In April of the same year, QIA along with other investors (GIC of Singapore, Falcon Edge, Amansa Capital, Think Investments, Carmignac and Goldman Sachs) invested $800 million in Swiggy’s. In October 2021, QIA, along with other investors (Coatue Management and Evolvence India), invested $175 million in Rebel Foods.
In February 2022, QIA announced its financial support of $1.5 billion to the investment firm Bodhi Tree. In July of that year, Bodhi Tree Systems invested $600 million in the Indian test prep business Allen Career Institute for a 36 per cent stake. In April of that year, Bodhi Tree Systems, along with a consortium of investors invested Rs 13,500 crore in Viacom 18.
In August 2023, QIA announced its plan to invest approximately $1 billion into Reliance Retail Ventures, a subsidiary of Reliance Industries. It was also reported that QIA has acquired about 2.5 per cent stake in Adani Green Energy for about $480 million. In September 2023, QIA, in collaboration with Grosvenor Property, invested $393 million in IndoSpace Logistics Parks IV.
On June 6 last year, India and Qatar held the inaugural meeting of the Joint Task Force on Investment (JTFI) in New Delhi. The idea behind forming the JTFI was to attract investments from the Qatar Investment Authority (QIA), the sovereign wealth fund of the Gulf nation, into India and explore potential Qatari investments across India’s entire energy value chain.
Regional security
The visit of the Amir also comes at a time when there is a ceasefire in place amidst the Israel-Hamas war in Gaza. Given its size, Qatar is known to punch way above its weight in regional and global issues. It has been playing a key role as a mediator between Israel and the Palestine militant group Hamas.
India, while not directly involved in the mediation, has welcomed ceasefire agreements and consistently advocated for peace and stability in the region. The strong bilateral relations between India and Qatar provide a platform for dialogue on regional security issues, enabling India to engage with key stakeholders and contribute to peace efforts indirectly.
However, now with the new Donald Trump administration assuming power in the US and driving the West Asia peace process, Qatar will now have to work closely with Washington, according to Pant.
“It will be interesting to see how India goes forth and assesses the process,” he said
The Taliban factor
Qatar also plays host to meetings between the Afghan Taliban and other global powers. In recent times, though not giving formal recognition to the Taliban regime, New Delhi has been engaging with the Taliban taking into consideration regional and economic considerations.
Reports now suggest that the Taliban now want to reopen the Afghanistan Embassy in New Delhi. The name being proposed to head the mission is Najib Shaheen, son of Sohail Shaheen, the Qatar-based Taliban spokesperson and head of the regime’s diplomatic outreach.
“As India progresses towards reaching out to the Taliban, Qatar may convey the views of the Taliban to New Delhi,” Pant said.
To sum it up, the multifaceted relationship between India and Qatar is of strategic importance, encompassing economic growth, defence and security collaboration, and cultural exchange. Amid regional conflicts, this partnership offers avenues for diplomatic engagement and underscores the significance of maintaining strong bilateral ties in promoting regional stability.
