Amidst US tariff decisions, India has moved towards a Free Trade Agreement (FTA) with Qatar. Union Minister Piyush Goyal announced in Doha that an FTA between the two countries could be finalized by mid-next year or the third quarter of 2026. This aims to increase trade between the two nations from $14 billion to $30 billion.
India and Qatar free trade: In response to US President Donald Trump's new tariff measures, India has accelerated its strategy for a Free Trade Agreement (FTA) with Qatar. Commerce and Industry Minister Piyush Goyal, during his visit to Doha, stated that the free trade agreement between India and Qatar could be finalized by the middle of next year or the third quarter of 2026. This agreement aims to increase trade between the two countries from $14 billion to $30 billion. Goyal also highlighted significant potential for cooperation in sectors such as agriculture, renewable energy, pharmaceuticals, and tourism.
Key Announcement Made in Doha
Piyush Goyal is on a two-day visit to Qatar. On Monday, he held several rounds of meetings with top Qatari officials and industrialists in Doha. During these discussions, extensive talks were held on issues concerning the enhancement of trade, investment, and economic cooperation between the two countries. Goyal stated that the current trade between India and Qatar is approximately $14 billion, and the government aims to increase it to $30 billion by 2030.
He added that the Free Trade Agreement will play a crucial role in achieving this target. The Minister informed that discussions between the two countries are progressing in a very positive and constructive direction.
India's New Strategy Following Trump's Tariffs
US President Donald Trump recently imposed heavy tariffs on several countries, including India. Especially after the decision to levy up to 50 percent duty on Russian oil imports and certain industrial products, India has begun preparations to rebalance its trade relations.
It is believed that the Free Trade Agreement with Qatar is India's strategic move in response to Trump's tariffs. Qatar has also shown interest in strengthening its ties with Asian countries, particularly India, while subtly distancing itself from the US in recent months.
Deepening Cooperation Between the Two Countries
The Union Minister stated that there are opportunities for cooperation in several sectors to elevate the economic partnership between India and Qatar to new heights. These sectors include agriculture, food products, renewable energy, data centers, pharmaceuticals, tourism, cosmetics, and artificial intelligence.
He informed that entrepreneurs and investors from both countries are now jointly exploring new opportunities. India aims to give a new direction to this cooperation in the industrial and technological sectors.
High Expectations from CII and FICCI
Piyush Goyal stated that Qatar is seeking good investment opportunities in India. He expressed confidence that the Indian industry, especially organizations like CII and FICCI, will provide excellent investment options for Qatar in India.
Several Qatari companies are exploring investment possibilities in India's energy, infrastructure, and technology sectors. Goyal highlighted that Qatar is a key member of the Gulf Cooperation Council (GCC), and its economic importance for India is continuously growing.
Current Status of India-Qatar Trade
According to the Ministry of Commerce, the total bilateral trade between India and Qatar exceeded US$14.15 billion in the financial year 2024-25. India's import share is higher, as India imports items like LNG, petroleum gas, and fertilizers from Qatar. Conversely, India exports food products, engineering goods, chemicals, plastics, and textiles to Qatar.
Goyal stated that once the FTA is implemented, trade barriers will be reduced, and products from both countries will be able to access each other's markets easily.
Discussions Also Underway with Other Countries
Piyush Goyal informed that India is not only in discussions with Qatar but also with Peru, Chile, and several other countries regarding Free Trade Agreements. He stated that India's objective is to boost its exports globally and strengthen partnerships with new economies.
He added that India aims to bring the trade balance in its favor in the coming years. For this, the government is continuously exploring new markets.
