Abstract: India and Qatar are natural partners with ties going back to 1973. Apart from India’s dependence on the Gulf country for energy needs, Qatar also hosts 0.74 million Indian expatriates. As the two countries celebrate 50 years of diplomatic relations, it becomes relevant to consider potential areas in trade and investment. Defense, terrorism and energy are three areas of collaboration to be further explored. While India looks to emerge as a significant exporter of defense technology, Qatar’s role as a crucial partner should be contemplated.
Problem statement: In the context of their 50-year diplomatic partnership, how can future areas of collaboration between India and Qatar be examined?
Bottom-line-up-front: As India and Qatar surpass 50 years of diplomatic partnership, it becomes important to explore which domains their relationship could expand into. Defense and security, energy security and renewable segments appear to be eligible sectors. Altogether, they have the potential to foster and improve the existing bilateral ties.
So what?: The two should focus on enhancing their defense and security partnership through active public and private sector engagement.
Source: shutterstock.com/GrAI
A Golden Jubilee of Partnership
India’s relationship with Qatar is significant. Qatar remains the largest source of natural gas imports to India, and at the same time, India is its fourth-largest trading partner. This is after China, South Korea and Japan. In fact, India was among the few countries which recognized Qatar soon after its independence in 1971. Since then, the two have fostered relations with one another. The end of the Qatar crisis in January 2021 was welcomed by India, which hoped that the Al-Ula Declaration would pave the way for peace, stability and prosperity in the region.
India was among the few countries which recognized Qatar soon after its independence in 1971. Since then, the two have fostered relations with one another.
As the two nations celebrate 50 years of diplomatic relations in 2023, it is clear that energy, trade and expatriates form the three pillars of bilateral relations. India and Qatar are expanding the domain of their cooperation, more so under the leadership of Prime Minister Modi. High-level bilateral visits have so far been held at regular intervals, indicative of how the two countries have supported each other in times of need. More significant than their immense potential for economic cooperation is their willingness to expand the scope of bilateral cooperation. As they commemorate a golden jubilee of partnership, it is pertinent to assess existing areas of collaboration while also considering newer avenues for cooperation.
Mutual Benefits
India is committed to deepening multifaceted bilateral cooperation in trade, investment, energy, food security, defence, technology, culture, education, health, media and people-to-people contacts. It believes Qatar has significant opportunities to invest in sectors like infrastructure, physical and digital connectivity, energy, defence and hospitality. In turn, Qatar intends to attract Indian entities, especially those seeking opportunities in the education, pharmaceuticals and healthcare sectors. Both countries find the impact of recent global developments on food and energy security concerning. Liquefied Natural Gas (LNG) rich Qatar is significant for India’s energy security, and India is willing to assist in meeting Qatar’s food security.[1]
The two countries envision ramping up their investment partnerships and, to that end, have established a startup bridge as part of the Startup India flagship initiative.[2] Qatar’s Foreign Direct Investment (FDI) in India is in excess of $450 million, with great potential to increase those investments. Invest India and the Investment Promotion Agency of Qatar have reached an understanding on cooperation to promote two-way investments between both countries.[3] External Affairs Minister Dr. S. Jaishankar shared his appreciation for Qatar’s commitment to business partnerships and briefed its Chamber of Commerce and Industry and Businessmen Association on new opportunities flowing from Atmanirbhar Bharat during his visit to Qatar in December 2020.[4]
Deepening Security and Defence Cooperation
Defence is a relevant area of cooperation that could be expanded. India and Qatar signed an agreement on defence cooperation in 2008, which provided the necessary framework to strengthen bilateral defence ties. In 2016, Prime Minister Modi and the Qatari Emir agreed to provide further impetus to these relations through joint exercises and enhanced training of naval, air and land forces. Qatar expressed interest in the opportunities offered under the “Make in India” initiative for the joint production of defence equipment in India while emphasizing cooperation in coastal defence.[5] Approximately 1.5 per cent of Qatar’s GDP expenditure is military, the 2021 figures being an estimated USD 11.6 billion – making it the 5th largest spender in the Middle East.[6] Equally, India’s defence sector has taken major strides in the last eight years and aims to be among the largest defence manufacturing countries[7] and achieve defence export worth $ 5 billion by 2024-25.[8] This is an opportune time for India and Qatar to strengthen the existing bilateral defence partnership and enhance the engagement of private-sector investors.
In 2016, Prime Minister Modi and the Qatari Emir agreed to provide further impetus to these relations through joint exercises and enhanced training of naval, air and land forces.
Under the leadership of Prime Minister Modi, the Indian government announced private sector-friendly provisions, including funding up to 70% of defence equipment development costs, relaxation of eligibility criteria and minimal documentation in 2016. Strikingly, India has enhanced FDI in the defence sector by up to 74% for companies which seek new defence industrial licenses and up to 100% for companies that come through the government. India has established two Defence Industrial Corridors, one in Uttar Pradesh and another in Tamil Nadu. The two states have announced policies to attract private players as well as foreign companies in the corridors.[9] Qatari companies can invest in India’s defence sector through these corridors. Likewise, India and Qatar can enhance defence ties through Inter-Governmental Agreements to boost Qatari investment in India’s defence sector.
Terrorism is another area in which the two countries can foster partnership. In 2015, India and Qatar agreed to strengthen their cooperation in combating terrorism at both the bilateral level and within the multilateral system of the UN. They stressed the need for closer cooperation in the area of security and counter-terrorism through regular dialogue, sharing of information, intelligence and assessments and training of personnel.[10] A year later, a bilateral Memorandum of Understanding (MoU) was signed to facilitate the exchange of intelligence related to money laundering, terrorism financing and related crimes.[11] Prime Minister Modi and the Qatari Emir Sheikh Tamim Bin Hamad Al-Thani reiterated their firm resolve to cooperate to mitigate the global menace that is terrorism, highlighting the need to isolate sponsors and supporters of terrorism. Most importantly, the two sides noted that global terrorism should be addressed with a comprehensive approach of countering violent extremism, combating radicalization and recruitment, disrupting terrorist movements, stopping all sources of terrorism finance, stopping the flow of foreign terrorist fighters, dismantling terrorist infrastructure, and countering terrorist propaganda through the internet.[12]
Prime Minister Modi and the Qatari Emir Sheikh Tamim Bin Hamad Al-Thani reiterated their firm resolve to cooperate to mitigate the global menace that is terrorism, highlighting the need to isolate sponsors and supporters of terrorism.
Lastly, India and Qatar can also enhance engagement in the energy sector. According to British Petroleum, by the end of 2020, Qatar had proven natural gas reserves of 24.7 trillion cubic metres, constituting 13.1 per cent of the global reserves. Qatar is India’s top import partner for natural gas, and New Delhi intends to extend the partnership into renewable energy as well. In 2016, India invited Qatar to invest in its Exploration & Production sector by bidding for the exploration blocks in India under the new “Hydrocarbon Exploration and Licensing” policy and “Discovered Small Fields” policy.[13]
As the Gulf countries move towards economic diversification and embrace the energy transition to attain carbon neutrality, there is an opportunity for India to cement partnerships based on renewable energy. In August 2022, Qatar announced its launch of two major solar projects, one at Mesaieed and another at Ras Laffan, that could take Qatar’s solar output to 1.67 gigawatts by the end of 2024.[14] Former Indian Vice President Shri M. Venkaiah Naidu invited Qatar, India’s trusted partner in its energy security, to collaborate on a sustainability journey by joining the International Solar Alliance.[15] Also, Qatar has begun investing in hydrogen energy and has announced the start of a blue ammonia plant for $1 billion.[16] India’s National Hydrogen Mission mentions that it intends to forge hydrogen partnerships with other countries, Qatar being a viable and reliable partner.
In August 2022, Qatar announced its launch of two major solar projects, one at Mesaieed and another at Ras Laffan, that could take Qatar’s solar output to 1.67 gigawatts by the end of 2024.
Conclusion
As India and Qatar mark 50 years of diplomatic relations, strengthening their partnership’s strategic alliance would be a logical next step. Defence and renewable energy are two areas with the potential to forge stronger ties in the coming decades. Emphasizing private partnerships facilitated by the government is the way to go for the two countries. With the invention of cell electric vehicles, hydrogen energy is an emergent source of clean fuel, one that holds prospects for bilateral cooperation in the near future.
Dr. Lakshmi Priya is a Research Fellow at the Indian Council of World Affairs. She is an expert in Middle East Studies with experience in policy-oriented think tanks in India. She has published several articles and contributes write-ups on the geopolitical and socio-economic issues of the region frequently. Her published catalogue also includes articles immersed in the Gramscian idea of cultural hegemony and Galtung’s idea of positive peace in the region. Before her fellowship at the Indian Council of World Affairs, she worked as Research Analyst at the Manohar Parrikar Institute for Defense Studies and Analyses. The views contained in this article are the author’s alone and do not represent the views of ICWA.
[1] “Visit of Vice President of India to Qatar,” Ministry of External Affairs, June 05, 2022, last accessed February 28, 2023, https://mea.gov.in/press-releases.htm?dtl/35390/visit+of+vice+president+of+india+to+qatar.
[2] “Startup India, Department for Promotion of Industry and Internal Trade,” Ministry of Commerce and Industry, last accessed February 28, 2023, https://www.startupindia.gov.in/content/sih/en/international/india-qatar-bridge.html.
[3] “Visit of Vice President of India to Qatar,” Ministry of External Affairs, June 05, 2022, last accessed February 28, 2023, https://mea.gov.in/press-releases.htm?dtl/35390/visit+of+vice+president+of+india+to+qatar.
[4] “Visit of External Affairs Minister of India to Qatar (December 27–28, 2020),” Ministry of External Affairs, December 28, 2020, last accessed February 28, 2023, https://mea.gov.in/outoging-visit-detail.htm?33344/Visit+of+External+Affairs+Minister+of+India+to+Qatar+December+2728+2020.
[5] “India-Qatar Joint Statement during the visit of Prime Minister to Qatar,” Ministry of External Affairs, June 05, 2016, last accessed February 28, 2023, https://mea.gov.in/outoging-visit-detail.htm?26870/IndiaQatar+Joint+Statement+during+the+visit+of+Prime+Minister+to+Qatar.
[6] “World military expenditure passes $2 trillion for first time,” SIPRI, April 25, 2022, last accessed February 28, 2023, https://www.sipri.org/media/press-release/2022/world-military-expenditure-passes-2-trillion-first-time.
[7] “Aero India not just a show, but showcases scope of indigenous defence industry: Modi,” The Hindu, February 13, 2020, last accessed February 28, 2023, https://www.thehindu.com/news/national/india-rejuvenated-defence-production-sector-in-8-9-years-prime-minister-modi/article66503454.ece.
[8] “India to soon be world’s largest defence manufacturing base, says PM Modi at Aero India 2023,” Business Today, February 13, 2023, last accessed March 22, 2023, https://www.businesstoday.in/latest/economy/story/india-to-soon-be-worlds-largest-defence-manufacturing-base-says-pm-modi-at-aero-india-2023-369967-2023-02-13.
[9] “Private Players in Defence Manufacturing Sector,” Ministry of Defence, July 26, 2021, last accessed March 09, 2023, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1739049.
[10] “Joint Statement during the state visit of the Emir of the state of Qatar to India,” Ministry of External Affairs, March 26, 2015, last accessed February 28, 2023, https://mea.gov.in/bilateral-documents.htm?dtl/25012/Joint_Statement_during_the_State_Visit_of_the_Emir_of_the_State_of_Qatar_to_India_March_2425_2015.
[11] “List of MoUs and agreements signed during the visit of Prime Minister to Qatar,” Ministry of External Affairs, June 05, 2016, last accessed February 28, 2023, https://mea.gov.in/outoging-visit-detail.htm?26870/IndiaQatar+Joint+Statement+during+the+visit+of+Prime+Minister+to+Qatar.
[12] “India-Qatar Joint Statement during the visit of Prime Minister to Qatar,” Ministry of External Affairs, June 05, 2016, last accessed February 28, 2023, https://mea.gov.in/outoging-visit-detail.htm?26870/IndiaQatar+Joint+Statement+during+the+visit+of+Prime+Minister+to+Qatar.
[13] Ibid.
[14] “Qatar to launch 2 major solar projects to enhance renewable power,” Daily Sabah, August 23, 2022, last accessed February 28, 2023, https://www.dailysabah.com/business/energy/qatar-to-launch-2-major-solar-projects-to-enhance-renewable-power.
[15] “Vice President lauds India-Qatar economic partnership; calls for building an enabling environment and forging more collaborations for mutual benefit,” Press Information Bureau, June 06, 2022, last accessed February 28, 2023, https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1831589.
[16] “National Green Hydrogen Mission, Ministry of Green and Renewable Energy,” last accessed February 28, 2023, https://mnre.gov.in/img/documents/uploads/file_f-1673581748609.pdf.
