India and Qatar: Strengthening a Strategic Partnership in a Changing Global Order
India-Qatar Relations: A Historical and Strategic Overview
India’s ties with Qatar stretch back centuries, with trade routes linking the Indian subcontinent to the Arabian Peninsula. Merchants from the Indus Valley exchanged goods with their Gulf counterparts, laying the foundation for economic and cultural interactions that continue today. During British colonial rule, the economic interdependence between India and Qatar was further solidified, with the Indian rupee serving as the primary currency in Qatar until the mid-20th century. Post-independence, diplomatic engagements strengthened, culminating in the establishment of embassies in New Delhi and Doha in the early 1970s. However, it was the liberalisation of India’s economy in the 1990s, coupled with Qatar’s rise as a global energy supplier, that transformed their relationship into a mutually beneficial economic partnership.
The growing demand for energy in India made Qatar an indispensable partner, particularly in liquefied natural gas (LNG) supply. Qatar’s Petronet deal with India in 2008 marked a turning point, securing long-term energy stability for New Delhi while ensuring a steady revenue stream for Doha. At the same time, the Indian expatriate community in Qatar—now over 800,000 strong—became a key pillar of bilateral ties, contributing significantly to Qatar’s infrastructure and economic development. More recently, Qatar’s diplomatic manoeuvring during the Gulf blockade (2017–2021) and its mediation efforts in regional conflicts have elevated its global standing. These developments, coupled with India’s growing strategic engagement with the Gulf region, have made it imperative for both nations to redefine their partnership beyond traditional trade and energy agreements.
The Trump-Modi Meeting and Its Impact on India-Qatar Relations
India’s engagement with Qatar cannot be analysed in isolation from broader geopolitical shifts, particularly its evolving relationship with the United States. The February 2025 Trump-Modi meeting underscored a new phase in Indo-US relations, reinforcing India’s position as a key American partner in Asia. The discussions between the two leaders centred on deepening trade ties, strengthening defence cooperation, and countering China’s growing influence in the Indo-Pacific region. These developments inevitably influenced India’s approach towards the Gulf states, including Qatar, as New Delhi sought to balance its strategic interests while maintaining regional stability.
Trump’s Middle East policies, including his administration’s stance on Iran and the Abraham Accords, forced India to recalibrate its engagements with Gulf nations carefully. The shifting US posture in the region created both opportunities and challenges for India-Qatar relations. On one hand, Qatar’s independent foreign policy, which often placed it at odds with its Gulf neighbours, made it a crucial player in regional diplomacy. On the other hand, India’s growing economic and security ties with Saudi Arabia and the UAE required a delicate balancing act to avoid alienating Doha. The February 2025 visit of Sheikh Tamim bin Hamad Al Thani must, therefore, be seen in the context of these broader global power realignments, as both India and Qatar sought to reinforce their partnership amidst shifting alliances.
Energy Security and Economic Cooperation: The Cornerstones of Bilateral Engagement
Energy has long been the bedrock of India-Qatar relations, with Doha supplying nearly 50% of India’s LNG imports. The February 2025 visit reinforced this critical partnership, with QatarEnergy finalising a five-year deal to supply India’s GAIL with 12 LNG cargoes annually. In a more significant move, QatarEnergy and Petronet LNG signed a 20-year, $78 billion agreement, securing stable gas prices for India at a time when global energy markets remain volatile. Given the increasing competition for Qatari gas from European nations in the wake of the Ukraine crisis, India’s ability to secure such a long-term deal reflects the strength of the bilateral relationship.
Beyond energy, the visit saw a renewed focus on economic diversification. Qatar committed to investing $10 billion in Indian infrastructure, renewable energy, and digital finance, signalling a shift from the traditional hydrocarbon-driven engagement. The establishment of a Qatar Investment Authority (QIA) office in India is set to facilitate these investments, ensuring smoother financial transactions and greater integration of the two economies. Additionally, both sides agreed to finalise a Bilateral Investment Treaty (BIT) and a revised Double Taxation Avoidance Agreement, providing a more stable regulatory framework for businesses. The target to double bilateral trade from $14 billion to $28 billion over the next five years reflects the confidence both nations have in their economic prospects.
Defence, Security, and Regional Geopolitics
While defence cooperation has traditionally been a secondary aspect of India-Qatar relations, recent global security challenges have necessitated deeper collaboration. The February 2025 visit saw discussions on expanding intelligence sharing, cybersecurity cooperation, and counterterrorism efforts, particularly in light of the rising threats from transnational extremist networks. Qatar, which hosts the largest US military base in the region at Al Udeid Air Base, plays a crucial role in regional security dynamics. Strengthening defence ties with India allows Doha to diversify its security partnerships while offering New Delhi strategic leverage in the Gulf.
The geopolitical significance of the India-Qatar partnership extends beyond defence. As Qatar continues to mediate in regional conflicts, including the Israel-Palestine crisis and Taliban diplomacy, India has sought to engage more actively in West Asian affairs. Qatar’s diplomatic agility, demonstrated during the Gulf crisis and its brokering of the Gaza ceasefire, aligns with India’s broader vision of a balanced and pragmatic West Asia policy. The Amir’s endorsement of India’s role in the India-Middle East-Europe Economic Corridor (IMEEC) also indicates a strategic convergence between the two nations in shaping regional economic architecture.
People-to-People Ties and Cultural Cooperation
The strong presence of the Indian diaspora in Qatar has long been a stabilising factor in bilateral relations. However, labour rights and expatriate welfare have remained contentious issues, particularly in the wake of concerns raised during the FIFA World Cup 2022. The February 2025 visit saw both sides reaffirm their commitment to improving working conditions for Indian workers in Qatar, with agreements to hold regular joint committee meetings on labour and employment issues.
Beyond labour concerns, the visit also placed emphasis on cultural and educational cooperation. The announcement of the India-Qatar Year of Culture, along with agreements on student exchanges and research collaboration in technology and medical sciences, reflects a broader vision of people-to-people diplomacy. The integration of India’s Unified Payments Interface (UPI) with Qatar’s financial systems further exemplifies the growing technological synergy between the two nations.
Challenges and Future Prospects
Despite the strong foundations of the India-Qatar relationship, certain challenges persist. Labour rights remain a sensitive issue, and India will need to ensure continuous diplomatic engagement to safeguard the interests of its expatriate workforce. Moreover, while Qatar has been a reliable energy partner, the global transition towards renewable energy necessitates a reconfiguration of the bilateral economic relationship. Ensuring that Qatar’s investments in India’s green energy sector materialise into tangible projects will be crucial for sustaining long-term cooperation.
Strategically, India must continue to balance its engagements with Qatar alongside its deepening ties with Saudi Arabia and the UAE. The complex power dynamics in the Gulf require New Delhi to adopt a pragmatic approach, ensuring that its partnerships across the region remain stable and mutually beneficial. Meanwhile, Qatar’s growing diplomatic engagements with China and Turkey present another layer of geopolitical complexity that India must navigate carefully.
Conclusion
The February 2025 state visit of Sheikh Tamim bin Hamad Al Thani to India marked a significant step towards transforming India-Qatar relations from a predominantly energy-driven engagement into a multifaceted strategic partnership. With deepening economic cooperation, expanding security collaboration, and a renewed focus on people-to-people ties, the bilateral relationship is poised for a new era of growth. As global power dynamics continue to shift, India and Qatar must sustain their diplomatic momentum, ensuring that their strategic alignment remains robust in an increasingly multipolar world.
