Qatar trade pact in works, draft likely by next month

In a significant step towards strengthening the economic ties, India and Qatar may finalise the terms of reference for a free trade agreement by October, a government official said on Monday. The official added that Commerce and Industry Minister Piyush Goyal may also visit Qatar on October 6 to discuss the proposed trade deal.

India and Qatar announced plans for a Comprehensive Economic Partnership Agreement (CEPA) to double bilateral trade by 2030 during the India visit of Emir of Qatar Sheikh Tamim bin Hamad Al-Thani in February. Qatar represents 1.22 per cent of India’s total trade, with India exporting $1.68 billion and importing $12.47 billion in FY 2024-25. Qatar’s primary exports to India include LNG, LPG, chemicals, petrochemicals and aluminium products. Both nations agreed to double bilateral trade to $28 billion over the next five year.

Amid US President Donald Trump’s 50 per cent tariff on Indian goods (with a 25 per cent penalty for Russian oil purchases), expanding Free Trade Agreement (FTA) partners has become critical for India to mitigate the impact. India is focused on market diversification to cushion the impact of US tariff. In FY 2024-25, India exported goods worth $86.5 billion to the US and had a trade surplus of over $40 billion.

The FTA, aimed at boosting bilateral trade and investment, is expected to cover a wide range of sectors. Qatar, a key supplier of liquefied natural gas (LNG) to India, is a vital partner in the energy sector, and the trade deal could further enhance this relationship.