Qatar pledges $10 billion investment in India to boost economic ties

Qatar has reaffirmed its commitment to invest $10 billion in India, a crucial development in strengthening the economic ties between the two nations. A joint statement released by the Prime Minister's Office of India highlighted this significant pledge, signaling deepened cooperation.

The statement was issued following high-level talks between Indian Prime Minister Modi and Qatar's Emir Tamim bin Hamad Al Thani. The Emir commenced a two-day visit to New Delhi on Monday, during which both sides engaged in extensive discussions, solidifying their diplomatic engagement.

Prime Minister Modi shared his delight on social platform X, stating, "Had a productive meeting with my brother, HH Sheikh @TamimBinHamad, the Amir of Qatar. Under his leadership, Qatar is witnessing remarkable progress. He is also deeply committed to strengthening India-Qatar friendship. This visit is special as we are elevating our ties to a Strategic Partnership."

The Qatari delegation lauded India's initiatives in creating a favorable environment for Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII), underscoring the positive strides India has made in improving ease of doing business and fostering a conducive environment for investors. The statement elaborated, "The Qatari side appreciated the measures taken by India to create a favorable environment for Foreign Direct Investment and Foreign Institutional Investment, and expressed interest to explore investment opportunities in various sectors, including infrastructure, technology, manufacturing, food security, logistics, hospitality, and other areas of mutual interest. To this end, the Qatari side conveyed their intention to invest US$ 10 billion in India."

A key outcome of the meeting was the agreement to double bilateral trade from the current $14 billion to $28 billion over the next five years. Furthermore, the Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, currently has $1.5 billion in Foreign Direct Investment (FDI) in India and has pledged an additional $10 billion. Qatar’s existing investments in India benefit sectors such as retail, power, IT, education, healthcare, and affordable housing. This increased investment is expected to further boost economic cooperation between the two countries.

Both sides also discussed potential negotiations for a Free Trade Agreement (FTA) between India and Qatar, which could increase trade opportunities and deepen economic ties between the two nations. This move aligns with India's broader strategy to enhance trade relations with the Gulf Cooperation Council (GCC) countries, with India already having strategic partnerships with the UAE, Saudi Arabia, Oman, and Kuwait.

Emir Al Thani's second visit to India culminated in the signing of two agreements and five Memoranda of Understanding (MoUs). These agreements cover various fields, including economic cooperation, youth affairs, and avoidance of double taxation, further cementing the foundation for a strategic partnership. Arun Chatterjee, Secretary of the Ministry of External Affairs, told reporters, "Trade, investment, and energy were the main topics of discussion between the two leaders today. The annual trade between India and Qatar is currently around $14 billion. Both sides have agreed to set a target to double this figure in the next 5 years."

Qatar's decision to elevate its relationship with India aligns it with other GCC nations that have already established strategic partnerships with India. This development is expected to unlock new opportunities for collaboration in trade, energy, and investment, thereby enhancing India's growing economic influence in the Gulf region. As India and Qatar advance their strategic partnership, the focus will remain on promoting investment, strengthening trade, and fostering long-term economic cooperation, marking a new phase in their diplomatic and economic relations.