India and Qatar Set to Finalize Free Trade Agreement by 2026
Strengthening Economic Ties
India and Qatar are on track to finalize a Free Trade Agreement (FTA) by mid-2026, as announced by Commerce and Industry Minister Piyush Goyal during a recent business delegation visit aimed at expanding bilateral trade and investment.
Progressing Towards an Agreement
"I believe we will finalize the FTA sometime by the middle, or perhaps the third quarter of next year, if not earlier," Goyal stated during a press briefing in Doha. This optimism stems from ongoing discussions to enhance trade relations between the two nations.
Significant Trade Partnership
Qatar ranks among India’s key trading partners within the Gulf Cooperation Council (GCC), with bilateral trade totaling over USD 14.15 billion in the fiscal year 2024-25. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Existing Trade Pacts
India has already established a trade pact with the UAE and is poised to sign a similar agreement with Oman in the near future. This ongoing momentum in establishing trade agreements further strengthens India’s position in the region.
Fast-Tracking FTA Negotiations
During discussions with his Qatari counterpart, Sheikh Faisal bin Thbin Faisal Al Thani, Minister Goyal emphasized the need to expedite FTA negotiations. Both ministers are committed to the ambitious goal of doubling bilateral trade.
Doubling Trade by 2030
Goyal expressed confidence that trade could double from USD 14 billion today to USD 30 billion by 2030. The ministers’ commitment to fast-tracking negotiations is a testament to their desire to achieve this goal.
Qatar’s Investment in India
Minister Goyal reported significant developments regarding Qatar’s USD 10 billion investment commitment to India. Qatar has already invested between USD 4-5 billion, with an additional USD 1-1.5 billion nearing finalization.
Investment Opportunities
Goyal noted that Qatar investors are particularly interested in notable Indian promoters and projects. Organizations such as the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce & Industry (FICCI) are expected to provide excellent opportunities for investment in various sectors.
Potential for Exceeding Investment Target
He expressed optimism that Qatar’s investments could surpass the USD 10 billion target in the coming years, paving the way for stronger economic ties.
Trade Deficit Challenge
India currently faces a substantial trade deficit with Qatar. Last year, India’s exports to Qatar amounted to USD 1.68 billion, while imports surged to USD 12.46 billion, resulting in a trade deficit of USD 10.78 billion.
Export Composition
Indian exports to Qatar in 2024-25 comprised various goods, including iron and steel products, rice, gold, processed minerals, motor vehicles, and petroleum products, among others.
Foreign Direct Investment (FDI)
From April 2000 to June 2025, India received USD 1.53 billion in foreign direct investment from Qatar, reflecting the continuous interest of Qatari investors in the Indian market.
Meeting with Business Leaders
Co-chairing a meeting with business leaders from both nations, Goyal identified numerous opportunities for enhanced cooperation in sectors such as agriculture, food products, renewable energy, data centers, tourism, pharmaceuticals, and AI.
Strategic Trade Relations
When questioned about the potential of increased exports to offset high US tariffs on Indian goods, Goyal emphasized the strategic importance of Qatar as a trusted friend and trading partner.
Commitment to Strengthening Relations
"We want to strengthen our trade relations not only with Qatar but also with other countries,” Goyal remarked, underlining the importance of collaborative economic growth.
Conclusion
The ongoing negotiations for a Free Trade Agreement, coupled with infrastructure investments, reflect a strong commitment from both India and Qatar to enhance bilateral trade relations. With an ambitious goal of doubling trade by 2030, both nations stand poised for significant economic benefits in the years to come.
Questions & Answers
What is the target date for finalizing the India-Qatar Free Trade Agreement?
- The agreement is expected to be finalized by mid-2026.
What was the total bilateral trade between India and Qatar in the fiscal year 2024-25?
- The bilateral trade totaled over USD 14.15 billion.
What sectors are Qatar investors interested in for investment in India?
How much foreign direct investment has India received from Qatar from April 2000 to June 2025?
- India has received USD 1.53 billion in foreign direct investment from Qatar during that period.
- What are the ambitious goals for bilateral trade by 2030?
- The goal is to double trade from USD 14 billion today to USD 30 billion by 2030.
