The visit of Prime Minister Narendra Modi to Qatar in June 2016, revived the momentum between the bilateral relations.
The investment requirements of a large emerging economy like India and the vast financial surpluses of an energy rich economy such as Qatar can be married to create a win-win situation for both of our countries.
What is the background of the issue?
The intent was positive, the policy paralysis in the later years of the previous government adversely impacted the investment outlook for the country.
Qatar’s desire to invest in India from its Sovereign Wealth Fund was one of the many casualties.
The current volume of Qatari FDI in India is modest, Qatar’s Sovereign Wealth Fund and other state-owned entities, as well as Qatari private investors, are looking at investment options in infrastructure in India.
Including in real estate, roads and highways, airports and airlines, ports, LNG, petrochemicals and fertilizers, and tourism/hospitality.
What is the potential of the Qatar investment?
There is vast potential for Qatar Investment Authority to substantially increase its investments in India.
India’s huge needs $ 1 trillion in the next 5 years in infra alone investment friendly policies, and QIA’s keenness to diversify its global portfolio.
India has made efforts to actively engage with QIA and other state-owned and private entities in Qatar, highlighting policies such as ‘Make in India’ and the advantages of investing in India.
The balance of trade is currently heavily in Qatar’s favour.
India’s corporate sector too is increasingly pursuing business opportunities in Qatar.
A number of reputed Indian companies, particularly in construction/infrastructure and IT, have operations in Qatar, including L&T, Voltas, TCS, Wipro, Mahindra Tech, HCL, SBI and ICICI.
What is the way forward?
While business has been the focus of the relationship, India’s ties with Qatar have largely been founded on energy and economic links, and the presence of the Indian community.
The interest of citizens living and working in Qatar, many of them engaged in projects related to the FIFA World Cup in 2022, is paramount for India.
Qatar backs political Islam, but this is an Islam that is at once moderate, accommodative, liberal and forward-looking.
The crisis in the Middle East would not impact India adversely, and India’s “Gulf policy is on very solid ground”.
however, said balancing the relationships in the region would require “diplomatic finesse” of a high order.
There might be some implications on investments, and the movement of labour could become difficult.
