Qatar announced on Tuesday that it is prepared to accelerate discussions for a new bilateral investment promotion and protection agreement with India. Commerce and Industry Minister Sheikh Faisal bin Thani Al Thani highlighted that India has become Qatar's third-largest trading partner, urging businesses in both nations to push for deeper investment and industrial ties.

Sheikh Faisal emphasized that Qatar has modernized its investment ecosystem and invited Indian investors to explore the full potential of the country's economy. He stated, "We are ready to take steps to fast-track the negotiations for this new agreement." At the India-Qatar Business Forum meet organized by CII, Faisal Al Thani noted that Qatar's official delegation was visiting alongside Amir Sheikh Tamim Bin Hamad Al-Thani, who arrived in India for a two-day visit. Between April 2000 and September 2024, Qatar invested $1.5 billion in India.

The bilateral trade between the countries dropped to $14 billion in 2023-24 from $18.77 billion in the previous year. Qatar’s key exports to India include LNG, LPG, petrochemicals, plastics, and aluminium, while India exports cereals, copper products, iron, steel, fruits, vegetables, textiles, chemicals, and precious stones to Qatar. As the largest supplier of LNG and LPG, Qatar also exports ethylene, propylene, ammonia, urea, and polyethylene to India. However, the balance of trade remains heavily in Qatar's favor.

Piyush Goyal, India’s Commerce and Industry Minister, pointed out that while the trade has been primarily focused on energy, it is time to expand into new technologies such as AI, IoT, quantum computing, and semiconductors. He stressed that the future of trade between India and Qatar would be built on three pillars: sustainability, entrepreneurship, and energy. Goyal also encouraged Qatari businesses to explore investment opportunities in India.

During the event, two MoUs were signed: one between CII and the Qatari Businessmen Association, and another between Invest Qatar and Invest India. Goyal also shared that Qatar National Bank is expanding its presence in India by opening an office in Gujarat’s Gift City.

When asked about the possibility of a trade deal with Qatar, Goyal mentioned that India is in talks with the Gulf Cooperation Council (GCC) countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. He added that India already has a free trade agreement with the UAE and is in the advanced stages of negotiations with Oman. Regarding rupee depreciation, Goyal assured that India’s currency is performing well in emerging markets and that the country’s foreign exchange reserves are sufficient, so there is no cause for concern.

Disclaimer: This image is taken from Business Standard.