Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani arrived in India on February 17, 2024, for a two-day state visit, marking his second official trip to the country. His visit aims to bolster diplomatic, trade, and investment relations between India and Qatar, a nation that plays a critical role in India’s energy security and economic partnerships.
Prime Minister Narendra Modi, in a special gesture, broke protocol and personally welcomed the Emir at Indira Gandhi International Airport, New Delhi, alongside External Affairs Minister S. Jaishankar. This warm reception highlighted the strategic significance of Qatar in India’s foreign policy.
Grand Welcome at Rashtrapati Bhavan
On February 20, 2024, President Droupadi Murmu and Prime Minister Modi formally welcomed Emir Al-Thani at the Rashtrapati Bhavan, where he was given a Guard of Honor. Following the ceremonial reception, the Emir met with senior government officials and key cabinet ministers, reinforcing the importance of Qatar-India relations.
The Emir’s visit also included a high-profile meeting at Hyderabad House, attended by key Indian ministers, including:
- Hardeep Singh Puri (Minister of Petroleum & Natural Gas)
- Piyush Goyal (Minister of Commerce & Industry)
- Nirmala Sitharaman (Minister of Finance)
- Mansukh Mandaviya (Minister of Health & Family Welfare)
- P.K. Mishra (Principal Secretary to the Prime Minister)
During this meeting, multiple agreements were signed to enhance trade, technology, and investment cooperation between the two nations.
Strengthening Economic Partnerships: Key MoUs Signed
India and Qatar signed two major Memorandums of Understanding (MoUs) on February 19, 2024, in New Delhi. These agreements focused on trade and investment collaboration and were signed in the presence of:
- Piyush Goyal (Indian Commerce Minister)
- Sheikh Faisal bin Thani bin Faisal Al-Thani (Qatar’s Minister of Commerce & Industry)
As part of these agreements, both nations launched a Joint Trade Forum, which will help expand business opportunities and strengthen economic ties.
Piyush Goyal emphasized that India sees Qatar as a crucial trade and investment partner, with both countries exploring new economic avenues for growth.
Why Qatar is Important for India?
India and Qatar share a deep economic and strategic partnership, particularly in the energy sector. Experts suggest that global geopolitical uncertainty, particularly the potential return of Donald Trump as U.S. President, could affect energy markets. In previous years, the Trump administration imposed strict sanctions on Iran, which impacted global oil supplies. A similar approach in 2025 could force India to reassess its energy security strategy.
Thus, Qatar emerges as a stable and reliable energy supplier for India.
Qatar’s Role in India’s Energy Security
- India’s Largest LNG Supplier: Qatar provides 50% of India’s Liquefied Natural Gas (LNG) needs.
- Key LPG Supplier: Qatar supplies 30% of India’s Liquefied Petroleum Gas (LPG) demand.
India is looking to expand its energy agreements with Qatar to ensure long-term supply stability and price security.
Trade Deficit Between India and Qatar
Despite strong trade relations, India has a significant trade deficit with Qatar.
According to the Observatory of Economic Complexity (OEC), bilateral trade between India and Qatar in 2023-24 was valued at $14.04 billion. However, India imported goods worth $12.34 billion from Qatar while exporting only $1.70 billion worth of goods to the Gulf nation.
- India’s biggest import from Qatar: Petroleum gas ($9.71 billion)
- Qatar’s biggest import from India: Rice ($1.33 billion)
This has resulted in a trade deficit of $10.64 billion for India, which the government hopes to reduce through trade diversification and increased exports.
Indian Businesses in Qatar
Qatar is home to a significant Indian business presence, with nearly 15,000 Indian companies operating in the country. Some of the major Indian corporations with a footprint in Qatar include:
- Larsen & Toubro (L&T)
- Tata Consultancy Services (TCS)
- Mahindra Group
Additionally, Qatar hosts around 835,000 Indian expatriates, who contribute to various sectors, including healthcare, engineering, education, finance, and labor industries.
Past Tensions: 2022 Diplomatic Strain
Despite strong economic ties, India and Qatar experienced diplomatic tensions in 2022 when former BJP spokesperson Nupur Sharma made controversial remarks about Prophet Muhammad during a TV debate.
Qatar was one of the first countries to condemn the remarks, demanding an official apology from the Indian government. The controversy led to global protests from the Muslim world, prompting the Indian government to take corrective diplomatic measures.
A Diplomatic and Economic Milestone
Emir Al-Thani’s visit to India marks a significant step forward in India-Qatar relations. The discussions and agreements signed during the visit indicate:
- Stronger Economic and Energy Cooperation: India is securing long-term energy partnerships with Qatar amid geopolitical uncertainty.
- Trade Expansion Opportunities: With the launch of the Joint Trade Forum, both nations are expected to diversify trade beyond oil and gas.
- Enhanced Diplomatic Ties: This visit solidifies India’s role as a key partner for Qatar in the South Asian region.
As the global economic landscape evolves, India’s engagement with Qatar will be crucial for energy security, trade diversification, and strengthening diplomatic ties. With both nations committed to deepening their relationship, the future looks promising for India-Qatar collaboration across multiple sectors.
