Qatar and India seek to expand economic ties

Business Economy

Posted by AI on 2025-09-08 10:36:53 | Last Updated by AI on 2025-09-08 14:06:58

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

India and Qatar's initiatives to strengthen bilateral trade ties comes amid Qatar's efforts to diversify its economy away from oil and gas and India's push to deepen its global economic influence.

Qatar and India are set to finalise the terms of reference for a free trade agreement (FTA) early next month, according to Qatari Commerce and Industry Minister, Ali bin Ahmed al-Kawari. The agreement would aim to double the Qatari-Indian bilateral trade, which is currently estimated at roughly $1 billion, within the next eight years.

Speaking at the Qatar-India Economic Roundtable in Doha, al-Kawari stated that the FTA, pending regulatory approval, will potentially be Qatar's first bilateral FTA with an Asian economy. According to the minister, Qatar views India as a crucial trade and investment partner, and the FTA will facilitate the movement of goods and capital between both countries.

For Qatar, this move is part of its broader strategy to diversify its economy and reduce its dependence on oil and gas revenues, which make up nearly 50% of its GDP. Similarly, India hopes to strengthen its international economic prowess and attract more investment. These goals are reflected in India's recent economic strategies, including its so-called "Global Gateway" initiative, which aims to invest $1 trillion globally in infrastructure development over the next decade.

The Qatari minister highlighted that both sides are discussing various cooperation areas, including the establishment of a Qatar-India Business Council to support investment opportunities, which would be facilitated by the upcoming FTA.

This announcement comes amid tensions between Qatar and its neighbours, including Saudi Arabia, the United Arab Emirates (UAE), and Egypt, who have severed diplomatic ties with Qatar since 2017, accusing it of supporting terrorism. Qatar has denied these allegations. Despite these tensions, India has maintained good relations with Qatar, and this economic cooperation agreement reflects that.

Given the potential impact of the FTA on both economies, the announcement of this agreement is big news within the context of Gulf economic relations and Indian international trade efforts.

Go!