India and Qatar Relations Elevated to Strategic Partnership

(Source – Indian Express, Section – The Cover Page – Page No. – 01)

Topic: GS2 – International Relations

Context

India and Qatar elevated their bilateral ties to a strategic partnership, aiming to double trade to USD 28 billion by 2030 and secure USD 10 billion Qatari investment in India.

Analysis of the news:

Strategic Partnership and Trade Expansion

• India and Qatar have upgraded their relationship to a strategic partnership, reflecting deeper cooperation in trade, investment, and energy.

• The two countries set a target to double bilateral trade from USD 14 billion to USD 28 billion by 2030.

• Qatar also committed to invest USD 10 billion in India, focusing on infrastructure, ports, renewable energy, smart cities, start-ups, and advanced technologies like artificial intelligence and robotics.

Energy Cooperation and Long-term LNG Supply

• Energy remains a crucial pillar of India-Qatar relations. Qatar, a significant supplier of Liquefied Natural Gas (LNG) to India, will supply 7.5 million metric tonnes per annum for 20 years starting 2028, ensuring India’s long-term energy security.

Exploring Free Trade Agreements (FTA)

• Both nations discussed the potential for a Free Trade Agreement (FTA) between India and Qatar, complementing India’s ongoing FTA negotiations with the Gulf Cooperation Council (GCC).

• This could further enhance economic ties and streamline trade regulations.

Security and Counterterrorism Cooperation

• The leaders unequivocally condemned terrorism in all forms, agreeing to bolster cooperation in intelligence sharing, cybersecurity, anti-money laundering, and combating transnational crimes.

• Regular meetings of the Joint Committee on Security and Law Enforcement were emphasized to strengthen these efforts.

Diplomatic and People-to-People Relations

• Acknowledging the Indian diaspora’s contribution to Qatar’s development, both sides expressed appreciation for the welfare measures provided to the Indian community.

• Additionally, two agreements and five MoUs were signed, covering economic cooperation, youth affairs, investment, and a double taxation avoidance agreement.

Regional Stability and Pending Diplomatic Issues

• The leaders exchanged views on West Asia’s evolving situation, including the Israel-Hamas conflict, highlighting regional peace and security concerns.

• The pending case of a former Indian Navy officer in Qatar was also discussed, with India appreciating Qatar’s cooperation in ensuring the welfare of Indian nationals.

Conclusion

• The elevation of India-Qatar ties to a strategic partnership marks a significant step towards deeper cooperation in trade, energy, security, and regional stability, paving the way for strengthened economic growth and diplomatic relations in the coming years.

What is the significance of India-Qatar Relations?

Political Significance- Qatar’s membership in Gulf Cooperation Council (GCC) is politically significant for India, especially concerning issues like Kashmir. Also, India needs support of Qatar for UNSC permanent membership. Energy Security- Qatar is the largest supplier of LNG to India. LNG makes up almost 50% of our LNG imports. Strong economic and trade ties- India is among the top four largest export destinations for Qatar (Qatar exports to India- LNG, LPG, chemicals and petrochemicals, fertilisers, plastics). India is also among the top three sources of Qatar’s imports (India’s key exports to Qatar include cereals, copper articles, iron and steel articles, vegetables, fruits). Strong Business Presence of Indian Companies- Several Indian Companies like L&T, Wipro, TCS and TechMahindra operate in Qatar. Large Expatriate Community and Remittances- Around 8 lakh Indian expatriate community live and work in Qatar. The flow of remittances (around 750 million dollars) and safety of Indian expatriate community, makes Qatar vital for India’s interest. Defence and strategic co-operation- India and Qatar have signed a Defence Cooperation Agreement for stronger defence cooperation . The maritime relations are further strengthened by Exercise Zair-Al-Bahr.

Practice Question: How can the government ensure that the fertilizer subsidy program remains environmentally sustainable while supporting the economic needs of farmers? (150 Words /10 marks)