India is preparing to finalise the terms of reference for a proposed free trade agreement (FTA) with Qatar in early October. Officials have indicated that the discussions are at an advanced stage, and Commerce and Industry Minister Piyush Goyal is expected to travel to Doha on October 6 to give the final push to the framework.
The move comes at a time when India is speeding up its efforts to secure new trade partners and cushion the blow from fresh tariffs imposed by the United States.
The planned visit is likely to conclude the framework for negotiations. While the details are still being worked out, the focus is on creating a structured pathway for stronger economic cooperation between the two countries. This framework would serve as the base for a wider trade pact that could cover goods, services, and investments.
During a state visit to India in February this year, Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani and India’s leadership agreed to deepen their partnership. At that time, both sides set a target to double bilateral trade to $28 billion within the next five years. The push to fast-track the FTA reflects a shared interest in strengthening trade and investment ties at a crucial moment.
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Strong Investment and Energy Links Already in Place
Qatar has already announced plans to invest around $10 billion in India across a wide range of sectors. These include infrastructure, technology, manufacturing, logistics, hospitality, and food security. Such investments are expected to help boost India’s domestic industries while opening up new avenues for cooperation.
Energy has long been the cornerstone of the relationship. India and Qatar enjoy close energy cooperation, with liquefied natural gas (LNG) playing a major role. Just last year, the two countries renewed a long-term deal for LNG supply. The agreement secures India’s energy needs for the next 20 years, beginning in 2028. This deal highlights the importance of Qatar as a trusted energy partner for India’s growing economy.
The proposed FTA is expected to further build on these strong foundations. By expanding cooperation beyond energy, both sides aim to create a more diverse and balanced trade partnership. Investment in technology and manufacturing is also seen as a way to promote long-term growth while meeting mutual economic interests.
U.S. Tariffs Push India to Diversify Trade
India’s urgency in strengthening trade relations with partners like Qatar comes against the backdrop of rising tariff pressures from the United States. Recently, U.S. President Donald Trump announced additional tariffs on Indian goods, doubling duties from 25% to 50%. The new measures are linked to India’s continued purchases of oil from Russia, which has become a sensitive geopolitical issue.
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Exporter groups in India estimate that the higher tariffs could impact nearly 55% of the country’s $87 billion worth of merchandise exports to the U.S. This puts a wide range of industries at risk, from textiles and machinery to chemicals and food products. Competitors such as Vietnam, Bangladesh, and China are seen as likely beneficiaries of the new U.S. tariffs, as they could capture some of India’s market share.
To counter these challenges, India is accelerating its efforts to secure new and reliable trade partners. Apart from Qatar, India is also seeking a free trade pact with the European Union, which is its largest trading partner in goods. Negotiations for that deal are expected to gather momentum later this year.
India is also working on bilateral trade agreements with Oman, Chile, and Peru. These talks form part of a wider strategy to diversify markets, reduce risks from over-reliance on a few countries, and ensure steady growth in exports. The government has stressed that while it is eager to expand global trade, it also wants to protect the interests of farmers and small businesses within India.
The expected framework with Qatar is, therefore, one of several key steps India is taking to navigate the challenges posed by shifting global trade dynamics. It highlights the country’s determination to forge stronger partnerships in the face of rising economic pressures.