In the face of shifting global trade dynamics, India and Qatar are intensifying their economic collaboration, aiming to diversify relations beyond traditional energy exports. Commerce and Industry Minister Piyush Goyal announced on August 29, 2025, that negotiations for a Free Trade Agreement (FTA) with Oman are nearing completion, and Qatar has expressed interest in initiating similar discussions.
Minister Goyal emphasized India’s commitment to supporting exporters amid global uncertainties, attributing some challenges to unilateral actions by other nations. He assured that the government is actively consulting with stakeholders, including Indian missions abroad, to explore alternative export destinations and bolster domestic consumption through reforms like the Goods and Services Tax (GST).
India’s share in global trade remains modest at approximately 2%. However, Minister Goyal highlighted that about 40% of items exported to the U.S. are unaffected by the recent 50% tariff increase, suggesting a limited impact on India’s overall export performance.
Bilateral trade between India and Qatar has seen fluctuations, declining from $18.77 billion in 2022-23 to $14 billion in 2023-24. Despite this dip, Qatar remains a significant partner, ranking among India’s top three Gulf Cooperation Council (GCC) investors. Qatar’s Commerce and Industry Minister, Sheikh Faisal bin Thani bin Faisal Al Thani, reaffirmed Qatar’s readiness to expedite negotiations for a Bilateral Investment Promotion and Protection Agreement (BIPA) with India, aiming to enhance industrial collaboration and diversify energy trade.
During the India-Qatar Business Forum held in February 2025, both nations agreed to elevate their relationship to a “strategic partnership,” setting a target to double bilateral trade to $28 billion within the next five years. Discussions focused on expanding cooperation into emerging sectors such as artificial intelligence, quantum computing, and semiconductors. Minister Goyal emphasized the need to transition from energy-centric trade to include new-age technologies, inviting Qatari businesses to explore investment opportunities in India.
The forum also witnessed the signing of two memorandums of understanding (MoUs): one between the Confederation of Indian Industry (CII) and the Qatari Businessmen Association, and another between Invest India and Invest Qatar. These agreements aim to foster joint ventures, foreign direct investment, technology partnerships, and policy-driven collaborations between the two nations.
In addition to trade and investment initiatives, the countries are enhancing digital connectivity. The National Payments Corporation of India has partnered with Qatar National Bank to introduce Unified Payments Interface (UPI) services in Qatar, facilitating seamless digital transactions for Indian expatriates and businesses operating in both countries.
As India and Qatar navigate the complexities of global trade, their strengthened economic ties reflect a shared vision for mutual growth and resilience. By diversifying trade partnerships and embracing technological advancements, both nations aim to fortify their economic landscapes and contribute to a more balanced global trade environment.
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