India & Qatar Set to Fast-Track Bilateral Investment Agreement, Strengthen Trade Ties
New Delhi, February 18, 2025: Qatar has reaffirmed its commitment to expedite negotiations for a Bilateral Investment Promotion and Protection Agreement (BIPA) with India. During the India-Qatar Business Forum, Qatar’s Commerce and Industry Minister, Sheikh Faisal bin Thani bin Faisal Al Thani, emphasized India’s increasing importance as Qatar’s third-largest trading partner and encouraged Indian businesses to tap into Qatar’s investment opportunities.
“We have modernized our investment ecosystem and invited Indian investors to explore Qatar’s economic potential. We are ready to fast-track negotiations for a new investment agreement,” stated Sheikh Faisal Al Thani. Accompanying the Amir of Qatar, Sheikh Tamim bin Hamad Al-Thani, is Qatar’s business delegation during his two-day visit to India. This visit aims to enhance trade and industrial cooperation between the two nations.
Strengthening Economic Ties
India received $1.5 billion in Foreign Direct Investment (FDI) from Qatar between April 2000 and September 2024. However, bilateral trade decreased from $18.77 billion in 2022-23 to $14 billion in 2023-24.
Qatar primarily exports LNG, LPG, petrochemicals, aluminum, and chemicals to India, while India’s exports consist of textiles, machinery, processed food, chemicals, and metals. Commerce Minister Piyush Goyal emphasized the need to diversify trade beyond energy, focusing on emerging sectors such as artificial intelligence, quantum computing, and semiconductors.
Major Developments at the India-Qatar Business Forum
Two Memoranda of Understanding (MoUs) were signed: one between the Confederation of Indian Industry (CII) and the Qatari Businessmen Association (QBA), and another between Invest Qatar and Invest India. Additionally, Qatar National Bank plans to expand its presence in India with a new office at Gift City in Gujarat.
Discussions are ongoing regarding a potential trade deal with Qatar under the Gulf Cooperation Council (GCC) framework. While India already has a Free Trade Agreement (FTA) with the UAE, it is in advanced discussions for a similar agreement with Oman. Minister Goyal reassured that India’s foreign exchange reserves remain stable, despite concerns about currency depreciation.
The growing partnership between India and Qatar indicates a promising future for investment, trade, and industrial collaboration, benefiting businesses in both countries.
