Recently, India’s External Affairs Minister held discussions with the top leaders of Qatar, focusing on bolstering the economic and security cooperation between the two nations. This is a part of India’s ongoing focus to engage more closely with West Asia, often seen as India’s extended neighbourhood. Being an integral member of the Gulf Cooperation Council, Qatar carries strategic significance in these engagements.
Key Takeaways from the Meeting
The primary areas of discussion included aspects of mutual interest such as energy, power, petrochemicals, investments, infrastructure, development, project exports, and education. The discussions were aimed at strengthening multifaceted bilateral relations in various domains, covering energy, trade, investment, food processing, healthcare, education, culture, defence, and security.
In 2019-20, the bilateral trade between India and Qatar was worth USD 10.95 billion. Notably, India expressed gratitude towards Qatar for securing Indian community members during the Covid-19 pandemic. The two countries have maintained robust high-level contacts amidst the pandemic.
India lauded the Qatari Businessmen Association’s commitment to business partnerships with India and apprised them of new opportunities stemming from Atmanirbhar Bharat. Meanwhile, the leader of Qatar acknowledged the significant contributions by the Indian community in Qatar and reminisced about his visits to India.
Recent Developments
India and Qatar have agreed to establish a special task force that would facilitate investments by the Qatar Investment Authority. This forms part of India’s sustained outreach to key West Asian states to mitigate the economic effects of the Covid-19 pandemic. The two sides are institutionalizing measures to promote and protect workers’ rights, resolve labour issues, and ensure safe people movement between both countries.
Economic Relations between India and Qatar
In recent years, the trade volume between India and Qatar decreased due to falling international gas and oil prices. Qatar, however, remains the fourth-largest export destination for India. Banking relations between the two countries are notedly strong.
Key Exports
LNG, LPG, chemicals, petrochemicals, plastics, and aluminium articles form Qatar’s key exports to India. In contrast, India’s primary exports to Qatar include cereals, copper articles, iron and steel articles, vegetables, plastic products, construction materials, textiles & garments, etc.
Energy Cooperation
Qatar is India’s largest supplier of liquefied natural gas (LNG), with India importing approximately 70% of its natural gas needs from Qatar.
Defence Ties
India and Qatar have limited cooperation in defence so far, mostly training, participation in conferences/events, and visits by ships of Indian Navy and Coast Guard. The naval exercise between the Indian and Qatar Navy, known as Za’ir-Al-Bahr (Roar of the Sea), is a noteworthy aspect.
Cultural Relations and Community Contributions
Regular cultural exchange activities involving Indian artists performing in Qatar provide a platform for fostering cultural relations. India appreciates Qatar’s support in co-sponsoring the UN General Assembly resolution declaring 21 June as the International Day of Yoga. There is a large Indian community in Qatar, contributing significantly to various sectors and largely respected for their hard work, sincerity, technical expertise, and law-abiding nature.
Education and Remittances
Several Indian schools in Qatar offer CBSE curricula to over 30,000 students, primarily children of Indian nationals working in Qatar. It’s estimated that remittances sent to India by the Indian expatriate community in Qatar round up to about 750 million dollars annually.
Future Prospects
Qatar has shown interest in investing in India’s infrastructure. India, on the other hand, is keen on receiving direct investments for manufacturing and production of liquefied natural gas and chemical industries, especially those related to fertilizers, urea, and petrochemicals.
