The 50% tariffs imposed on India have pushed it toward cooperation with other countries, as exports to the US are set to become costly. Piyush Goyal’s recent visit to Qatar and India‘s motives of doubling trade with the Middle Eastern country are a step in the same direction.
Currently, trade between India and Qatar stands at 14.15 billion dollars, and it is set to double in the next five years due to the bilateral trade agreement. Earlier on Monday, the Union Minister of India co-chaired the India-Qatar Joint Commission on Economic and Commercial Cooperation with Sheikh Faisal bin Thani bin Faisal al Thani, his Qatari counterpart. The move is taken to compensate for the export loss India will face due to the tariffs imposed by the US.
The leaders have discussed the current relationship between the two countries and the existing barriers. Efforts and strategies to increase cooperation in sectors including healthcare, finance, agriculture, technology, and renewable energy have also been taken. As per the statements of the Commerce Minister, trade relations between the two countries will be strengthened through a Comprehensive Economic Partnership Agreement.
The minister also spoke at the India-Qatar Joint Business Council, where he reaffirmed the trade ties between the two nations and also highlighted India’s efforts to stand strong amidst global headwinds. He also focused on the untapped potential of the two economies and listed various sectors where deeper cooperation can be seen. The sector includes automobiles, pharmaceuticals, electronics, processed food, textiles, gems and jewellery, IT, and solar energy.
The JBC was the first such in-person gathering, which was also lauded by Goyal. Currently, India has a 10.78 billion dollar trade deficit with Qatar, and its 89% imports include petroleum products. During the meetings, Goyal highlighted the role of Qatar as a major energy importer to India, and the LNG agreement of 7.5 million tonnes per year, which will come into effect from 2028, will form a major backbone of the cooperation.
More avenues of cooperation are being explored by both sides, as Goyal met Qatari officials and business leaders during the visit.
