India, Qatar Elevate Ties To ‘Strategic Partnership’

Syllabus: GS2/IR

Context

• India and Qatar have signed an agreement to elevate their ties to the level of a strategic partnership.
  • Both countries commemorated the 50 years of establishment of diplomatic relations in 2023.

Key Outcomes

• Both countries are exploring the option of concluding a Free Trade Agreement (FTA).
• Two sides also signed a double taxation avoidance treaty and also planned on doubling their trade to $28 billion within five years.
• Both sides discussed the Israel-Palestinian conflict in Gaza Strip.
• India currently has strategic partnerships with four other members of the Gulf Cooperation Council – the United Arab Emirates (UAE), Saudi Arabia, Oman, and Kuwait.
• Significance of the Visit: 
  • Arab States Summit: The visit of the Qatari Emir has drawn attention as it is being held just two days prior to the five Arab states summit in Riyadh.
    • The summit will take up the new proposals from the United States. 
  • US Proposal on Gaza Crisis: President Trump’s proposed that the Palestinians of the region should be shifted out to neighbouring countries like Egypt and Jordan.
    • India supports a two-state solution in bringing an end to the Israel-Palestinian crisis and has welcomed the ceasefire that was announced recently.

Gulf Region – The Gulf Region typically refers to the countries surrounding the Persian Gulf in the Middle East.  – It includes nations like Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, and the United Arab Emirates (UAE).  – This region is known for its vast oil reserves, which have significantly influenced global economics and politics.

Brief on India-Qatar Relations

• Economic and Trade Relations: Qatar is the largest provider of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) to India, supplying 10.91 million metric tonnes of LNG and 4.92 million metric tonnes of LPG in FY 2023-24.
  • The current annual trade is worth $14.08 billion.
• Defence: India participates in the biennial Doha International Maritime Defence Exhibition and Conference (DIMDEX).
  • Exercise Zair-Al-Bahr is a joint naval exercise between the Indian Navy and the Qatar Emiri Naval Force (QENF).
  • The India-Qatar Defence Cooperation Agreement was signed in 2008 and extended for five years in 2018.
  • The agreement is managed through the Joint Defence Cooperation Committee (JDCC).
• Labor and Diaspora: India has a large expatriate community in Qatar, numbering over 700,000.
  • The Indian diaspora in Qatar plays a crucial role in the country’s development, particularly in construction and other sectors.
• Regional Cooperation: Gulf Cooperation Council (GCC) is a political and economic alliance of six Middle Eastern countries—Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman. It was established in 1981.
  • India engages regularly with GCC and aims to deepen its relationship with the GCC.

Challenges/Concerns

• The Hamas–Israel conflict and shipping attacks in the Red Sea affect India’s energy security and economic growth.
  • India remains cautious in Middle Eastern politics, balancing relations with the Gulf, Iran, and Israel.
  • If the conflict escalates, this balancing act could become more challenging.
• Delay in Connectivity Projects: The conflict has delayed a senior-officials meeting for the I2U2 group since 2023.
  • India urges economic initiatives like I2U2 and IMEC to progress despite the conflict.
• FTAs with GCC: Delays in finalizing the India–GCC Free Trade Agreement (FTA) due to changes in the GCC’s trade negotiator.
  • Reaching an agreement that satisfies all GCC states remains a key challenge.

Way Forward  

• Growing security challenges are increasing the need for India to be a key strategic partner of Gulf states.
• India aims to expand its regional presence and influence.
• Stronger alignment in political, economic, and security interests is shaping a new framework for India-Gulf relations.
• If maintained, this framework will boost trust and enable more ambitious cooperation.

Source: TH