India-Qatar Investment Pact: Talks to Speed Up - Business Forum

New Delhi, Feb 18 (PTI) Qatar on Tuesday said it is ready to take steps to speed up the negotiations for a new bilateral investment promotion and protection agreement with India.

Qatar's Commerce and Industry Minister Sheikh Faisal bin Thani bin Faisal Al Thani said India has become its third largest trading partner.

He added that businesses in both countries need to push the boundaries for further strengthening investment and industrial collaboration.

"We have modernised our investment ecosystem...we invite Indian investors and entrepreneurs to explore the true potential of Qatar's economy...We are ready to take steps to fast track negotiations for a new bilateral investment promotion and protection agreement," Faisal Al Thani said at CII's India-Qatar Business Forum meet.

Qatar's ministry is here with a business delegation. They are accompanying Amir of Qatar Sheikh Tamim Bin Hamad Al-Thani, who arrived here yesterday on a two-day visit.

India received USD 1.5 billion of foreign direct investments from that country during April 2000 and September 2024.

The bilateral trade has dipped to USD 14 billion in 2023-24 from USD 18.77 billion in 2022-23.

Qatar's key exports to India include LNG, LPG, chemicals and petrochemicals, plastics, and aluminium articles, while India's key exports include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, processed food products, electrical and other machinery, plastic products, construction material, textiles and garments, chemicals, precious stones and rubber.

Qatar is the largest supplier of LNG, and LPG. Besides, India also imports ethylene, propylene, ammonia, urea and polyethylene from Qatar.

The balance of trade continues to be heavily in Qatar's favour.

Speaking at the event, Commerce and Industry Minister Piyush Goyal said that "over the years, we see a bias towards energy trade" between the two countries and there is a need to work towards pushing trade in other products also.

"Now we are looking at a new future where we will transition from energy being a bulwark of our trade to new age technologies whether it is artificial intelligence, internet of things, quantum computing, and semiconductors," he said.

Goyal added that the transition of trade relations between the two countries will rest on three pillars - sustainability, entrepreneurship and energy.

He also invited Qatari businesses to explore investment opportunities in India.

Two MoUs were inked at the event - one between industry body CII (Confederation of Indian Industry) and QBA (Qatari Businessmen Association); the other between Invest Qatar and Invest India.

The minister informed that the Qatar National Bank is expanding its presence in India by setting up an office in the Gift City in Gujarat.

On the sidelines when asked about the possibility of a trade deal with Qatar, Goyal said "There are always discussions of every type. We are in discussions with the GCC for a free trade deal. Often many of the countries from GCC have discussed with India to do bilateral agreements also...we are open to both".

The Gulf Cooperation Council (GCC) has six member countries - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).

India already has a free trade agreement with the UAE. It is in the advanced stage to conclude talks for a similar pact with Oman.

On rupee depreciation, Goyal said India's currency is performing good in emerging markets.

"India's forex reserves are sufficient...so no concern," he added.