Sheikh Tamim’s visit strengthens Qatar-India ties. Focus on economic expansion, investments, and strategic cooperation beyond traditional energy sectors.
Sheikh Tamim Bin Hamad Al Thani, the Amir of the State of Qatar, recently concluded a state visit to India, marking a significant step in strengthening the bilateral relations between the two nations. The visit, which took place in February 2025, signals a growing partnership focused on economic cooperation, investment, and strategic alliances.
Ceremonial Welcome and Engagements
Upon his arrival in New Delhi, Sheikh Tamim received a ceremonial welcome at the forecourt of Rashtrapati Bhavan. President Droupadi Murmu and Prime Minister Narendra Modi were present to greet the Amir, underscoring the importance of this visit. Prime Minister Modi also personally welcomed Sheikh Tamim at Delhi’s Indira Gandhi International Airport, demonstrating the high priority India places on this relationship.
During the visit, Sheikh Tamim engaged in meetings with Prime Minister Modi at Hyderabad House, where discussions covered various aspects of bilateral relations. Memoranda of Understanding (MOUs) were exchanged, highlighting new areas of cooperation. The Amir also met with President Droupadi Murmu at Rashtrapati Bhavan. The visit marks the Amir’s second state visit to India, the first having occurred in March 2015, indicating a sustained interest in fostering stronger ties.
Expanding Economic Ties Beyond Energy
Qatar is keen on expanding its economic partnership with India beyond the traditional energy sector. While Qatar remains a crucial supplier of Liquefied Natural Gas (LNG) to India, both nations are exploring opportunities in technology, artificial intelligence, and other non-energy sectors. Ahmed Bin Mohammed Al Sayed, Qatar’s minister of state for foreign trade affairs, emphasized the importance of diversifying the economic relationship. He highlighted the potential for Indian and Qatari businesses to collaborate in new and emerging fields. Qatar currently provides over 48% of India’s global LNG imports. In February 2024, Petronet LNG signed a long-term deal with QatarEnergy for the supply of 7.5 million tonnes of LNG per annum, starting in 2028 and extending until 2048.
Investment Opportunities and Encouragement
The Qatari government is actively encouraging Indian businesses to explore investment opportunities in Qatar. Al Sayed assured that Qatar is working to strengthen economic ties and create more partnerships across various sectors. He expressed enthusiasm for enhancing the partnership between the two countries to the next level. Several investments by the Qatar Investment Authority (QIA) in Indian companies demonstrate this commitment.
Key Investments by QIA
- In February 2022, QIA announced financial support of $1.5 billion to Bodhi Tree, an investment firm focused on media and consumer technology opportunities in Southeast Asia, with a particular emphasis on India.
- In August 2023, INQ Holding, a wholly-owned subsidiary of QIA, invested $1 billion in Reliance Retail Ventures Ltd. and acquired a 2.7% stake in Adani Green Energy for $474 million.
- In September 2023, QIA invested $150 million in Indospace.
- In November 2023, QIA invested $50 million in Global Dental Services.
A History of Strong Ties
Qatar has been a key partner for India in the Gulf region, with significant trade and investment collaborations. The bilateral trade between the two countries stands at approximately $20 billion. Beyond economic ties, a large Indian expatriate community of around 840,000 resides in Qatar, contributing to various sectors. Approximately 15,000 Indian companies operate in Qatar, with cumulative investments of $450 million.
Recent Developments and Strategic Importance
The India-Qatar relationship has seen significant improvement recently, aligning with India’s focus on engaging with the West Asian region and ensuring energy security. Defence cooperation also exists, with India offering training and participating in events like DIMDEX. Qatar’s role as a mediator in West Asia, particularly between Israel and Hamas, is also noteworthy. Additionally, Qatar facilitates discussions between the Taliban and global powers, potentially serving as a conduit for communication between the Taliban and India.
Looking Ahead
Sheikh Tamim’s visit underscores the commitment of both nations to deepen their strategic partnership. With a focus on expanding economic ties, encouraging investments, and collaborating in new sectors, India and Qatar are poised to strengthen their relationship further in the years to come. A potential trade deal between Qatar and India may also be on the horizon. The visit may also lead to additional LNG purchases by India from Qatar.
Sources: https://timesofindia.indiatimes.com/india/watch-qatar-amir-sheikh-tamim-bin-hamad-al-thani-receives-ceremonial-welcome-in-presence-of-pm-modi-president-murmu-at-rashtrapati-bhavan/articleshow/118346418.cms
https://www.firstpost.com/explainers/pm-modi-protocol-welcome-qatar-emir-india-ties-importance-13864236.html
https://m.economictimes.com/news/economy/foreign-trade/qatar-emirs-visit-to-india-may-boost-gulf-nations-investments/articleshow/118337935.cms