India is hoping to finalise the terms of reference for a proposed free trade agreement (FTA) with Qatar this week as Union minister for commerce and industry Piyush Goyal began his two-day maiden visit to Doha on Monday (October 6).
On day one, Goyal met Sheikh Faisal bin Thani bin Faisal Al Thani, Minister of Commerce and Industry of Qatar. “We discussed ways to increase India-Qatar bilateral trade and also reaffirmed our commitment to further strengthen the multifaceted partnership across trade, investment, and strategic cooperation, opening immense avenues for greater collaboration,” Goyal announced on social media platform X.
India is exploring an FTA with Qatar to secure alternative export markets and cushion its exporters from rising tariff pressures in the US. Through the proposed FTA, India plans to diversify its trade with Qatar which currently is heavily skewed toward energy imports. Petroleum crude and gas products making up nearly 90 percent of India’s total imports from Qatar, according to the Global Trade Research Initiative (GTRI).
“The two sides are expected to hold wide-ranging discussions reviewing bilateral trade performance, addressing existing trade barriers and non-tariff issues, and exploring avenues to enhance trade and investment flows. The talks are likely to include deliberations on the proposed India–Qatar FTA, with the way forward on finalization of the Terms of Reference (ToR) for the Comprehensive Economic Partnership Agreement (CEPA) which will further strengthen economic cooperation between both countries,” the Indian ministry of commerce said in a statement.
Cooperation in other key sectors such as finance, agriculture, environment, tourism, culture, and healthcare will also form an integral part of the discussions, it added.
The two countries will also hold the first India Qatar Joint Business Council which will be attended by top businessmen from both sides. On the sidelines of the visit, Goyal will also be meeting other Qatari dignitaries and top businessmen from Qatar Chamber and Qatari Businessmen Association. In addition, he will engage with representatives of the Doha Chapter of the Institute of Chartered Accountants of India (ICAI), the Indian Business and Professionals Council (IBPC), Qatar, as well as senior members of Qatari industries and the Indian community in Qatar.
In February this year, when the Qatari minister for commerce and industry was in New Delhi for an event, Goyal had said India is now looking at a new future where it will transition from energy being the bulwark of its trade with Qatar to AI (artificial intelligence), internet of things and semiconductors.
That month Qatar also announced its commitment to invest $10 billion in India as well as have its sovereign fund open an office in the South Asian nation. However, no timeline of the investment has been stated yet.
India-Qatar bilateral trade of $14.14 billion is heavily tilted against India. While Indian exports were worth $1.68 billion, the imports from Qatar stood at $12.46 billion. Key energy components included liquefied natural gas ($6.39 billion), liquefied butanes ($1.67 billion), liquefied propane ($ 1.54 billion), petroleum crude ($1.06 billion), other petroleum products ($ 407 million).
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