Amir of Qatar's 2nd Visit to India

Amir of Qatar's 2nd Visit to India

21-02-2025

 

  1. Sheikh Tamim bin Hamad Al Thani, the Amir of Qatar, visited India from February 17-18, 2025.
  2. This was Amir's 2nd State visit to India.  He had earlier visited India on a State Visit in March 2015.
  3. The visit coincided with the India-Qatar Joint Business Forum, with Ministers of Commerce from both countries & key figures from Qatari finance, energy, infrastructure, and technology sectors participating.
  4. Moreover, The both leaders strongly condemned terrorism in all its forms, including cross-border terrorism, and agreed to work together to fight it through both bilateral and multilateral efforts.
     

Bilateral Ties and Trade Relationship
 

  1. This visit followed earlier trips by India’s External Affairs Minister S. Jaishankar to Doha in June and December 2024, reinforcing the growing importance of India-Qatar relations.
  2. Qatar plays a vital role in India's energy security, particularly through Liquefied Natural Gas (LNG) imports, which are essential to India's energy needs.
  3. India is Qatar's 2nd-largest trading partner, with bilateral trade reaching $14 billion in 2024.
  4. Both countries aim to double bilateral trade to $28 billion in the next 5 years.
  5. There was Strategic Partnership, a significant shift in India-Qatar relations.
     

Economic and Trade Developments
 

  1. QatarEnergy secured a 5-year agreement to supply 12 LNG cargoes per year to India’s GAIL.
  2. Additionally, a 20-year LNG deal worth $78 billion was signed, saving India at least $6 billion in energy costs.
  3. Qatar committed to $10 billion in investments in India, focusing on infrastructure, energy, and technology sectors.
  4. A new Bilateral Investment Treaty (BIT) is in the works, potentially accommodating Qatari needs, following India’s similar flexibility shown with the UAE BIT in 2024.
     

Geopolitical Considerations
 

  1. The visit comes at a time when Qatar is a key player in the geopolitics of the Middle East, particularly regarding issues like Gaza and regional stability.
  2. Qatar's role in mediating conflicts, such as the Gaza ceasefire in January 2025, and hosting key diplomatic negotiations, including the Taliban's office in Doha, has enhanced its influence.
  3. The Saudi-led blockade from 2017-2021, which targeted Qatar, disrupted trade routes, but Qatar turned the crisis into an opportunity, opening new trade routes and enhancing relations with countries like India.
  4. Despite challenges, Qatar has grown into a diplomatic heavyweight, strategically positioning itself amid shifting regional dynamics.
  5. It has played a critical role in both Middle East peace efforts and facilitating key talks with groups like the Taliban and Hamas.
  6. India-GCC Cooperation: Qatar expressed support for India's growing cooperation with the Gulf Cooperation Council (GCC). Both sides also expressed their satisfaction with the India-GCC Joint Ministerial Meeting held in Riyadh in September 2024.
  7. UN Reforms: Both sides emphasized the need for reforms in the United Nations and particularly in the UN Security Council.
     

Diplomatic and Economic Tensions in the Past
 

  1. 2015-2016 Diplomatic Engagements: Prime Minister Modi’s personal engagement with Qatar centered around issues like labour reform for Indian workers in Qatar and the $1 billion penalty that India’s PetroNet faced, which Qatar waived after diplomatic efforts.
  2. 2017-2021 Blockade: The blockade had a significant impact on India’s bilateral efforts, especially since Qatar supplied half of India’s LNG during that period.
  3. However, India maintained a stance for constructive dialogue.
  4. In December 2023, Qatar also addressed the death sentences for Indian Navy veterans arrested on espionage charges. 7 out 8 veterans were released by February 2024.
     

Changes in India-Qatar Relations Post-Blockade
 

  1. With the Gulf region moving towards diplomatic rapprochement, Qatar, despite tensions, maintained strong ties with India.
  2. The India-Middle East Economic Corridor (IMEEC) unveiled in September 2023 bypassed Qatar, but recent engagements have paved the way for greater collaboration.
  3. The visit included discussions around Qatar’s investments in India’s infrastructure, technology, and energy sectors.
     

 Bilateral Agreements and MoUs Signed
 

  1. Revised Double Taxation Agreement: Both countries signed a revised agreement on the avoidance of double taxation and the prevention of fiscal evasion.
  2. MoUs Signed:
     
    1. MoU between Ministry of Finance, India, and Ministry of Finance, Qatar on Financial and Economic Collaboration.
    2. MoU on Cooperation in the Field of Youth and Sports.
    3. MoU on Cooperation in the Field of Documents and Archives.
    4. MoU between Invest India and Invest Qatar.
    5. MoU between Confederation of Indian Industry (CII) and Qatari Businessmen Association.
       

Looking Forward
 

  1. The new Strategic Partnership between India and Qatar emphasizes deepening ties in trade, energy, investment, security, and regional cooperation.
  2. With both sides seeking to double trade and expand investments, India-Qatar relations have the potential to grow significantly, influencing both regional stability and global energy markets.

 

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