India and Qatar have taken a significant step in strengthening their economic ties by agreeing to double bilateral trade to approximately $28 billion over the next five years. The Qatar Investment Authority (QIA) has also expressed interest in increasing its investments in India, particularly in infrastructure projects, smart cities, food parks, startups, and emerging technologies like artificial intelligence, robotics, and machine learning.

Expanding Beyond Energy Trade

Speaking at the India-Qatar Business Forum in New Delhi, India’s Commerce and Industry Minister, Piyush Goyal, highlighted the long history of successful energy trade between the two nations. However, he emphasized that the future of India-Qatar relations will extend beyond hydrocarbons to encompass cutting-edge sectors such as technology and sustainability.

“India-Qatar’s future partnership will rest on the pillars of sustainability, technology, entrepreneurship, and energy,” Goyal stated. He was joined at the forum by Qatari Commerce and Industry Minister Sheikh Faisal bin Thani bin Faisal Al Thani, who served as the Guest of Honour.

Strengthening Diplomatic and Economic Relations

The visit of the Amir of Qatar, Sheikh Tamim Bin Hamad Al Thani, to India from February 17-18, 2025, was marked by a warm welcome from Prime Minister Narendra Modi. Goyal pointed out that the personal reception extended to the Qatari leader was a testament to the strong and evolving partnership between the two countries.

“I think, in coming days, there would be significant growth in both trade and investments between India and Qatar,” Goyal remarked.

Opportunities for Collaboration

During the business forum, Goyal invited Qatar to explore investment opportunities in India’s dynamic and resilient economy. He proposed the establishment of a joint working group to identify key sectors of mutual interest. The forum was jointly organized by the Confederation of Indian Industry (CII) and the Department for Promotion of Industry and Internal Trade (DPIIT).

Qatari Minister Sheikh Faisal bin Thani bin Faisal Al Thani acknowledged the deep-rooted relationship between the two countries, describing it as a tradition built on “mutual respect, shared interests, and a commitment to bolster economic cooperation.”

Current Trade and Investments

According to official data, bilateral trade between India and Qatar exceeded $14 billion in 2023-24. India primarily imports liquefied natural gas (LNG), liquefied petroleum gas (LPG), petrochemicals, plastics, and aluminum articles from Qatar. In return, India exports cereals, iron and steel, vegetables, fruits, spices, textiles, chemicals, construction materials, and machinery to the Gulf nation.

Qatar’s investments in India, in the form of Foreign Direct Investment (FDI), amount to over $1.5 billion, spanning sectors such as telecom, retail, education, health, IT, power, and affordable housing. Recent QIA investments include:

  • $1 billion into Reliance Retail Ventures Limited (RRVL) (August 2023)
  • $393 million in IndoSpace Logistics Parks (September 2023)
  • $50 million in Global Dental Services (November 2023)
  • $140 million in Shriram Housing Finance Ltd (January 2025)
  • $450 million for a 25.1% stake in a unit of Adani Transmission Ltd (February 2020)

Meanwhile, Indian companies such as Larsen & Toubro, Voltas, Shapoorji Pallonji, Wipro, TCS, and Tech Mahindra have also made investments in Qatar, amounting to approximately $356 million between 2017 and 2025.

Future Business and Startup Collaborations

DPIIT Joint Secretary Sanjiv emphasized that the India-Qatar business delegation would serve as a catalyst for stronger trade partnerships. He also highlighted Qatar’s participation in Startup India Mahakumbh 2025, scheduled for April 3-5, 2025, as a pivotal moment for fostering deeper collaboration in technology and innovation.

Qatar’s Role in India’s Energy Sector

Qatar remains India’s largest supplier of LNG and LPG. In 2023-24, it supplied:

  • 10.91 million metric tonnes (MMT) of LNG (46% of India’s total LNG imports)
  • 4.92 MMT of LPG (26% of India’s total LPG imports)

India and Qatar have a long-standing energy partnership. A key agreement signed in 1999 between QatarGas and Petronet LNG ensured the supply of 7.5 MMT of LNG annually to India until 2028. In February 2024, a new agreement between QatarEnergy and Petronet LNG extended the contract until 2048, with an estimated total value of $78 billion. Additionally, in December 2024, GAIL signed an agreement with Qatar Energy to purchase 60 LNG cargoes over the next five years.