INDIA-QATAR
Current Relations
- Economic Relations
- Trade: Bilateral trade between India and Qatar reached $15.03 billion in 2021-22. India ranks as one of Qatar’s top three export markets and import suppliers.
- Imports: India imports LNG, LPG, chemicals, and petrochemicals from Qatar, with aluminum being a major import.
- Exports: India exports items like cereals, copper, iron, steel goods, vegetables, plastics, building supplies, textiles, and clothing to Qatar.
- Indian Companies: Over 6,000 Indian companies operate in Qatar across sectors such as infrastructure, communications, and IT.
- Investments: Indian investments in Qatar amount to approximately $450 million.
- Port Management: A Memorandum of Understanding (MoU) was signed to enhance cooperation in port management in the Gulf of Mexico and the Indian Ocean.
- Security Relations
- Defence Conference: India participates in the biennial Doha International Maritime Defence Exhibition and Conference (DIMDEX) in Qatar.
- Maritime Exercises: India and Qatar conduct the bilateral maritime exercise Za’ir-Al-Bahr (Roar of the Sea).
- Naval Interaction: Indian Naval and Coast Guard ships visit Qatar for cooperation and interaction.
- Agreement on Law and Security: An agreement was signed in 2021 covering issues like money laundering, transnational crime, and intelligence sharing on terrorism.
- Money Laundering: An MoU was signed between financial intelligence units of both countries to curb illegal money movement.
- Energy Relations
- LPG: Qatar supplies more than 50% of India’s total LNG imports. India imported LNG worth $5.9 billion from Qatar in 2021-22.
- Other Products: Qatar also exports ethylene, propylene, ammonia, urea, and polyethylene to India.
- Culture
- Diaspora: There is a large Indian community in Qatar, with 7.80 lakh Indians acting as a cultural bridge between the two nations.
- Yoga and Ayurveda: Qatar supported the UNGA resolution declaring June 21 as International Yoga Day and has approved Ayurveda as part of alternative medicine practices.
- Education: Over 30,000 students attend 14 Indian schools in Qatar, primarily serving the Indian community.
- Cultural Cooperation Agreement: Established in 2012, this agreement promotes cultural exchanges between the countries.
- Cooperation During COVID-19
- Medical Aid: The Qatar Fund for Development (QFFD) supplied medical relief to India.
- Medical Supplies Transport: Qatar Airways transported medical supplies globally to support India’s COVID-19 relief efforts.
- Cryogenic Containers: In June 2021, Indian Air Force C-17 aircraft transported cryogenic containers from Qatar for COVID-19 relief.
Importance/Benefits of India-Qatar Relations
- Historical Importance
- Ancient Maritime Trade: The relationship dates back to the ancient trade routes, including links to the Indus Valley Civilization (IVC) and the civilization of Dilmun.
- Colonial Period: British India established protectorates in the Gulf region, including Qatar.
- Post-Independence: India-Qatar relations continue as part of a longstanding maritime and trade history.
- Economic Importance
- Energy Security: Qatar is a major supplier of LNG and LPG to India, supporting energy diversification.
- Investment: Qatar invested $5 billion in India’s energy sector in 2008, with potential plans for a gas pipeline from Qatar to India via Oman.
- Tourism and Remittances: Qataris frequently visit India, and India receives substantial remittances from Indians working in Qatar.
- Export Diversification: Strengthening ties with Qatar supports India’s goal of export diversification.
- Reduced Gas Prices: In 2016, Qatar reduced gas export prices for India, supporting energy affordability.
- Strategic Importance
- West Asia Policy: Qatar plays a key role in India’s West Asia strategy, with strategic significance in the Gulf.
- Countering China: Qatar’s position as a commercial hub is crucial for India’s efforts to balance China’s influence in the Middle East.
- Regional Grouping: Qatar’s role in the OIC and India’s relations with it could potentially support India’s engagement with the OIC.
- Political Importance
- Recognition of Qatar: India was one of the first countries to recognize Qatar after its independence in 1971.
- Visits: High-level bilateral visits have been exchanged on a regular basis. In 2015, H.H. Sheikh Tamim Bin Hamad Al Thani, the Amir of Qatar visited India on a state visit.
- Security
- Defence: In 2008, India and Qatar signed a maritime defence agreement, allowing for defence training and mutual visits to enhance security cooperation.
- Counter-Terrorism: India aims to collaborate with Qatar to prevent terrorist threats, given the region’s vulnerability to radicalization.
- Energy Security: Qatar’s strategic location near the Strait of Hormuz is crucial for East Asia’s energy security.
- Conflict Zone: India’s relationship with Qatar strengthens its influence in Middle Eastern conflicts and security discussions.
- Terror Financing: India collaborates with Qatar’s Central Bank’s Emergency Response Team (Q-CERT) to combat financing that supports terrorism.
Challenges in India-Qatar Relations
- Kafala System: This system governs immigrant labor in Qatar but often leads to inhumane treatment, affecting Indian expatriates and creating tensions.
- Arab Conflict: India’s involvement in Middle Eastern issues can be complicated by divisions between Iran and Arab countries, affecting agreements with Qatar.
- China’s Influence: Chinese loans and investments in the Middle East make it challenging for Indian businesses in Qatar.
- Qatar Crisis: The diplomatic crisis in 2017 between Qatar and other Gulf countries created complications in India-Qatar relations.
- Exit from OPEC: Qatar’s 2019 exit from OPEC and its focus on LNG exports have implications for India’s energy sourcing.
Way Forward
- Labour Protection: India should work with Qatar to ensure better protection for Indian expatriate workers, addressing labor abuses linked to the Kafala system.
- Soft Power: Utilizing Bollywood and cultural diplomacy can help India enhance its “soft power” in Qatar.
- Education Cooperation: Collaborating on educational opportunities can make it easier for Indian students to access top-tier education in Qatar.
- Maritime Cooperation: Better coordination in maritime policies could facilitate smoother emergency evacuations and enhance maritime security.
- Deepen Military Ties: Increasing exchanges of military delegations, training programs, and joint exercises would bolster military cooperation.