India is actively negotiating a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) and exploring a similar pact with Qatar, aiming to deepen bilateral ties and boost cooperation in trade, energy, investment, and security.
The development was announced during a special briefing on the state visit of the Amir of Qatar to India. Ministry of External Affairs (MEA) Secretary (CPV & OIA) Arun Kumar Chatterjee said, “India and the Gulf Cooperation Council (GCC) are currently negotiating a free trade agreement. As for Qatar, both sides are exploring the possibility of signing a similar agreement in the future, which was part of the discussions during this round of talks.”
India shares deep historical and economic ties with the Gulf region. Qatar, one of India’s closest allies in the Gulf, plays a pivotal role in India’s energy security, accounting for 41% of the country’s total natural gas imports. The Gulf region is also home to millions of Indian expatriates whose remittances significantly contribute to India’s economy. According to a Reserve Bank of India (RBI) report, remittances from the UAE alone amounted to USD 15.40 billion in the financial year 2020-21, representing 18% of India’s total inward remittances.
The GCC, comprising Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, is India’s largest trading partner bloc, with bilateral trade reaching over USD 154 billion in FY 2021-22. Negotiations for an India-GCC FTA, which began in 2004 with a Framework Agreement on Economic Cooperation, had stalled but have now resumed with renewed momentum.
During the visit, India and Qatar signed an agreement to elevate their bilateral ties to a strategic partnership and exchanged multiple Memorandums of Understanding (MoUs) covering trade, energy, investment, innovation, technology, food security, culture, and people-to-people ties.
The two leaders also reviewed the landmark agreement signed in February 2024 between Qatar Energy and Petronet LNG Limited, under which Qatar will supply 7.5 million metric tonnes per annum of liquefied natural gas (LNG) to India from 2028 for 20 years. “India and Qatar share a vibrant energy partnership, and both leaders discussed ways to broaden this partnership, including exploring mutual investments,” Chatterjee said.
Prime Minister Narendra Modi thanked the Amir of Qatar for his support to the large Indian community in Qatar, especially during the COVID-19 pandemic. “India and Qatar enjoy deep-rooted, friendly relations anchored in historic trade and people-to-people ties,” he remarked.
The Amir of Qatar, Sheikh Tamim Bin Hamad Al Thani, arrived in India on a two-day visit and received a ceremonial welcome with a Guard of Honour at Rashtrapati Bhavan. The Agreement on the Establishment of a Strategic Partnership between India and Qatar was exchanged in the presence of Prime Minister Modi and the Amir at Hyderabad House in the national capital.
(Inputs from ANI)
