India-Qatar

India-Qatar

Context:

India and Qatar hold the first meeting of the Joint Task Force on Investment.

More on News: 

• A Joint Task Force on Investment has been agreed upon between both countries to facilitate investments by the Qatar Investment Authority (QIA) into India.
• In line with the vision to strengthen investment cooperation, the first meeting of the Joint Task Force on Investment (JTFI) between India and Qatar was convened in New Delhi.
• In the spirit of fostering mutual growth and prosperity, the Joint Task Force on Investment has reaffirmed the commitment of both Nations to strengthen bilateral relations and to leverage the collective potential for accelerated growth.

India-Qatar Relation: 

• Historical background:

• • The earliest can be traced back to 2500 BCE when the Indus Valley civilisation had ties with the Mesopotamian empire through its trading port in Lothal in Gujarat.
  • Dilmun was an important trading centre located near Qatar which acted as a link between the maritime trade of Mesopotamia and that of India. 
  • The silk route also played an important role in linking the East Asian region to the West Asian region via India. 
  • Export from Qatar: dates, horses and pearls and Indians played a crucial role as bankers and financiers in the pearl trade.

• Political relations:

• • India and Qatar share a longstanding history of friendship and cooperation.
    • Diplomatic relations were established in 1973, which were upgraded to a strategic partnership in 2008.
  • High-Level Diplomatic Visits: Notable visits include those by the Emir of Qatar to India in 1999, 2005, and 2012, and the Indian Prime Minister’s visit to Doha in 2016 and 2024 strengthen economic ties.
    • India and Qatar have strengthened cooperation across sectors like energy, economy, trade, investment, and education. Several MOUs and agreements have been signed, covering customs, intelligence sharing, qualifications, tourism, health, youth, and sports.
  • Strong Diplomatic ties: Eight Indian ex-navy sailors who had been held in Qatar were released, which is a major diplomatic victory for India and strengthens bilateral ties between the two countries.

• Economic Cooperation: 

• • Trade and Investment: 

• • • India’s bilateral trade with Qatar in 2022-23 was US$ 18.77 billion. 
    • India’s export to Qatar during 2022-23 was US$ 1.96 billion and India’s import from Qatar was US$ 16.8 billion.
    • India is among the top three largest export destinations for Qatar.
  • Energy: 
    • Qatar is the largest supplier of LNG and LPG  to India accounting for over 48% and 29% respectively of India’s global LNG and LPG imports. 
    • India and Qatar signed a major deal that will secure exports of Qatari liquified natural gas to India until the end of 2048. This builds on a 25-year agreement that was due to expire in 2028.

• • Infrastructure: 

• • • According to the Qatar Chamber of Commerce and Industry (QCCI), there are over 15000 big and small Indian companies operating in Qatar, wholly owned and Joint Venture.
    • India and Qatar have established a Joint Task Force, focusing on investment flows and energy security.
      •  This initiative aims to facilitate investments by the Qatar Investment Authority into India and explore Qatar’s investments across the entire energy value chain within India.
    • QIA to invest approximately $1 billion into Reliance Retail Ventures. Limited (RRVL), a subsidiary of Reliance Industries Limited (Reliance Industries).

• Defence Cooperation:

• • Maritime security: To strengthen cooperation and enhance interoperability both navies hold the bilateral Maritime exercise Zair-Al-Bahr.
  • India regularly participates in the biennial Doha International Maritime Defence Exhibition and Conference (DIMDEX) in Qatar. 
    • The event is a premier platform for the maritime and security community to showcase cutting-edge military technology and build relationships with key stakeholders.
  • India-Qatar Defence Cooperation Agreement: Signed in 2008, and further extended for five years in November 2018.

• Cultural Relations:

• • Agreement on Cultural Cooperation: Signed in 2012 through this cooperation there are regular cultural exchanges between the two sides.
  • Azadi ka Amrit Mahotsav: The Embassy of India, Doha and the Indian Community in Qatar celebrated in 2022-23. 
  • India-Qatar Year of Culture: The year 2019 was celebrated as  India-Qatar Year of Culture.
  • Yoga: Qatar, as a co-sponsor, supported the Resolution at the UNGA, declaring 21 June as the International Day of Yoga (IDY). 
  • Diaspora:There are over 835,000 Indian nationals residing in Qatar as of December 2023 and are engaged in a wide spectrum of professions including medicine; engineering; education, finance; banking; business; and media apart from a large number of blue-collared workers. 

• • The Indian community comprises around 27% of the total population of Qatar and Qatar ranks among the top 10 countries in terms of inward remittances to India.

• Education:

• • Currently, over 50,000 Indian students are studying in 19 Indian schools, with 28 branches. 
  • Milestone International Education (MIE) – Savitribai Phule Pune University (MIE-SPPU) started functioning in Qatar in September 2021.
    •  MIE-SPPU offers graduate-level and post-graduate-level courses.

Challenges:

• Energy Dependence: India’s significant dependence on Qatari LNG makes it vulnerable to price fluctuations and supply disruptions. 
• Geopolitical Complexities: The Gulf region, where Qatar is located, has its share of geopolitical complexities and conflicts. 
  • India’s relationship with other countries in the Gulf, like Saudi Arabia and the UAE, can sometimes influence its ties with Qatar.
• China Factor: Qatar has aligned its Qatar National Vision 2030 with the Belt and Road Initiative (BRI) with a special focus on the energy sectors. 
• Economic Ties: The decline in trade volume between India and Qatar in recent years has raised concerns about the economic stakes in the bilateral relationship.
• Qatar Geopolitical role: Qatar is alleged to support terrorism as the country is a key base for the group’s political activities like Hamas.

Way Forward: 

• Balancing Trade: The current trade imbalance in favour of Qatar needs to be addressed to ensure a more equitable bilateral trade relationship.
• Counter-Terrorism Cooperation: Qatar’s advancements in cyber security and AI present an opportunity for India to enhance its own digitalisation and cyber security initiatives, particularly in light of the significant threats posed by data privacy and cyber security breaches in India.
• Maritime Cooperation: Strengthening maritime cooperation between India and Qatar can facilitate greater collaboration in the Gulf and Indian Ocean regions, ensuring the free flow of oil and gas and securing access to shipping lines.
• Defence Manufacturing and Exports: The framework of “Make in India” and “Atmanirbhar Bharat” presents an attractive market for Qatar, and New Delhi’s extensive defence modernisation plan can be leveraged to establish cooperation in defence manufacturing and exports.”