India’s Gulf strategy: Why Qatar matters more than ever

March 27, 2025
Posted by: Anil Trigunayat
Categories: India, Qatar

In diplomacy, there are standard protocols, and reciprocity is often the defining parameter. The same applies to diplomatic courtesies. However, exceptions are sometimes made. In India, for decades now, a visiting Head of State is typically received by a Cabinet Minister, a Minister of State, or sometimes even a Secretary to the Government of India. Receiving a Head of State by the Prime Minister is an exception, and whenever it happens, it is perceived as a special gesture—much like inviting a Head of State or Government to be the Chief Guest on Republic Day.

Prime Minister Narendra Modi chose to receive the Qatari Head of State, Sheikh Tamim bin Hamad Al-Thani, during his state visit to India (17–18 February), clearly affirming the high importance India attaches to its strategic ties with Doha. It was, therefore, expected that the relationship would be officially upgraded to a formal strategic partnership, even though, in practice, it had already functioned as such. PM Modi has visited Qatar twice and was conferred with its highest honour. This is one of the few countries with which India had an early Memorandum of Understanding (MoU) for defence cooperation.

Despite this, there was an unpleasant incident involving the apprehension of eight former Indian Navy officers on alleged charges of espionage. However, they were later released and pardoned by the Amir, owing to his regard for and relationship with PM Modi. Fortunately, this chapter is now behind us.

This is a unique phenomenon in the Gulf and Arab world, where interpersonal relationships and mutual trust are essential for opening doors. I recall mentioning to the late Sushma Swaraj ji, former Foreign Minister, that frequent interactions—even over a cup of coffee—with her counterparts, without any MoU-driven agenda, could yield great dividends for our bilateral relationships. Fortunately, our leadership has now transformed transactional relationships into bilateral partnerships across the region. Qatar, within the GCC, ascended the diplomatic ladder during this highly significant visit of the Amir to India.

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India has always championed diplomacy and dialogue for resolving disputes between nations. This was also evident during the four-year-long blockade of Qatar by its brotherly neighbours. Regional powers understand India’s comprehensive diplomatic approach, even in a bilateral context, and respect it. However, India also continued to supply essential goods to the Qatari people. In 2017 alone, India’s exports to Qatar grew by 83 per cent. Currently, trade between the two nations varies between $10 billion and $14 billion, and both sides have agreed to double this by 2030.

Indian businesses, both from India and within the GCC, rose to the occasion to alleviate shortages and support the Qatari people during the blockade. A large number of Indian companies, both big and small, along with the Indian workforce, continue to contribute to the growth and development of Qatar—the richest emirate by per capita GDP. The two sides have also decided to work towards a Free Trade Agreement (FTA) to enhance market access and facilitation.

India and the UAE already have a mutually beneficial Comprehensive Economic Partnership Agreement (CEPA), which has yielded significant gains in a short time. This serves as both an example and a template for future negotiations. Additionally, New Delhi has reinvigorated efforts to negotiate an India-GCC FTA. The banking sector plays a crucial role in this partnership, with Qatar’s adoption of UPI and the opening of a Qatar National Bank branch in GIFT City expected to boost trade, investment, tourism, and business facilitation. India has also included Qatar in its e-visa facility, further strengthening bilateral ties.

Qatar is an important and reliable partner in India’s energy security and, consequently, plays a significant role in India’s growth story. India imports over 70 per cent of its natural gas (LNG and CNG) requirements from Qatar. Just last year, a long-term 20-year agreement was signed by Petronet for the supply of 7.5 million tonnes of gas annually from 2028 onwards, valued at $78 billion. Interestingly, this agreement will run concurrently with India’s Viksit Bharat 2047 mission, aligning well with the country’s climate change objectives.

Although Qatari investments in India, currently hovering around $1.5 billion, have remained below their full potential, the announcement of an additional $10 billion investment in India’s infrastructure sector is a welcome move. This will further enhance economic engagement between the two countries, particularly in areas such as infrastructure, technology, manufacturing, food security, logistics, hospitality, and other sectors of mutual interest. Invest Qatar and Invest India have also signed an MoU to identify and facilitate investment opportunities.

The updated Avoidance of Double Taxation and Prevention of Fiscal Evasion Agreement, signed during the visit, provides an additional level of assurance, as collaboration between the two Finance Ministries will enable real-time exchange of information. Furthermore, the elevation of the existing Joint Working Group on Trade and Commerce into a Joint Commission on Trade and Commerce is set to act as a key driver in strengthening economic ties. The Joint Commission will serve as an institutional mechanism to review and monitor the full spectrum of economic cooperation between the two countries and will be chaired by the Ministers of Commerce and Industry on both sides.

Health and food security, alongside energy security, as well as deeper cooperation in emerging sectors such as technology and innovation—including AI, cybersecurity, and space—expand the horizons for strategic collaboration. The two sides discussed avenues for advancing e-governance and sharing best practices in the digital sector. Both also welcomed the participation of Indian startups in Web Summits in Doha, Qatar, in 2024–25.

One of the key announcements in the Joint Statement issued by the two leaders pertains to countering terrorism in all its forms and manifestations, including cross-border terrorism. This addresses concerns in India—reported by various media outlets—regarding some Takfiri and extremist groups allegedly receiving direct or indirect support through various charities from the Gulf, including Qatar. Both sides have also agreed to enhance real-time intelligence cooperation to counter terrorism, extremism, and radicalisation, which pose a destabilising threat to all nations and humanity at large.

India, being the third-largest Muslim-majority nation in the world, is naturally mindful of the sensitivities of Islamic nations and their people. Likewise, it is warranted and expected that India’s strategic partners demonstrate the same sensitivity towards the welfare of Indians and India’s security.

In recent years, Qatar has emerged as a ‘go-to’ country and has played an active role in resolving regional and global conflicts—from the Taliban in Afghanistan to the Gaza conflict involving Hamas and Israel. It has also been quick to secure strategic influence in Syria. Additionally, Qatar hosts the largest US military base in the region, as well as a Turkish military base, and maintains good relations with Tehran.

The visit, therefore, provided an excellent opportunity to gain insights into the volatile regional dynamics while also sharing India’s perspectives on various regional and global issues. Under Qatar’s chairmanship of the GCC, the India-GCC Foreign Ministers’ Dialogue has been initiated, along with a Joint Action Plan. Furthermore, a bilateral high-level mechanism headed by the Foreign Ministers has been established, which bodes well for India’s deeper engagement at bilateral, sub-regional, and regional levels in this strategically vital extended neighbourhood.

The author is the former Indian Ambassador to Jordan, Libya and Malta and is currently a Distinguished Fellow with Vivekananda International Foundation. Views expressed in the above piece are personal and solely those of the author.

India’s Gulf strategy: Why Qatar matters more than ever

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