Joint Ventures, Tech Collaboration Can Help Narrow India's Trade Deficit with Qatar: GTRI

Joint ventures in energy infrastructure, technology collaboration, and cross-border investments can help reduce India's trade deficit with Qatar, think tank GTRI said on Sunday.

India's trade with Qatar stood at USD 14.15 billion in 2024-25.

The trade relationship remains heavily skewed toward energy imports, with petroleum crude and gas products making up nearly 90 per cent of India's total imports from Qatar, the Global Trade Research Initiative (GTRI) said.

India's exports to Qatar totalled USD 1.68 billion, while imports surged to USD 12.46 billion, producing a substantial trade deficit of USD 10.78 billion in the last fiscal.

"The figures underscore the energy-centric nature of India's commerce with the Gulf nation, with hydrocarbons making up the bulk of inbound shipments," GTRI founder Ajay Srivastava said.

Imports from Qatar were overwhelmingly composed of petroleum crude and gas products, amounting to USD 11.08 billion, about 88.9 per cent of the total imports.

Key energy components include liquefied natural gas (USD 6.39 billion), liquefied butanes (USD 1.67 billion), liquefied propane (USD 1.54 billion), petroleum crude (USD 1.06 billion), and other petroleum products (USD 407 million).

"These energy products remain the core of the bilateral trade, reflecting India's heavy reliance on Qatar for LNG and hydrocarbon supplies," he said, adding that "joint ventures in energy infrastructure, technology collaboration, and cross-border investments can help reduce India's trade deficit and reinforce Qatar's role as a trusted long-term partner".

The other imports from the Middle East nation include fertilisers (USD 208 million), organic chemicals (USD 257 million), plastic raw materials (USD 222 million), aluminium and aluminium products (USD 148 million), dye intermediates (USD 113 million), and inorganic chemicals (USD 97 million).

He also said that for India, Qatar is a vital partner in its West Asia strategy, offering a combination of energy security, economic opportunity, and strategic access.

Qatar is among India's top suppliers of liquefied natural gas (LNG) and liquefied petroleum gas (LPG), crucial for powering its industrial and urban growth.

Its location in the Persian Gulf gives it influence over key maritime trade routes that underpin India's import flows.

"The presence of over 8,00,000 Indian workers in Qatar not only strengthens people-to-people links but also contributes significantly to India's remittance inflows," Srivastava said.

He added that India's exports of USD 1.68 billion to Qatar reflected mixed trends across sectors, with industrial products, food items, and machinery dominating the basket.

In 2024-25, it included products of iron and steel (USD 154 million), rice (Basmati) (USD 123 million), rice (Other than Basmati - USD 40 million), gold and precious metal jewellery (USD 110 million), processed minerals (USD 89 million), motor vehicles/cars (USD 88 million), petroleum products (USD 62 million), electrical machinery (USD 33 million), electronics (USD 31 million), buffalo meat (USD 28 million), and sugar (USD 27 million).

He suggested India to diversify imports by promoting industrial partnerships in chemicals, fertilisers, and metals; and expand exports of engineering goods, machinery, and value-added food products, besides exploring joint ventures in energy infrastructure to deepen strategic ties.

Commerce and Industry Minister Piyush Goyal is leading a business delegation to Doha from October 6 to discuss ways to boost trade and investments between the countries.

India and Qatar are likely to finalise the terms of reference for a bilateral trade agreement this month. After this, talks can be launched for a trade pact.

India has received USD 1.53 billion in foreign direct investment from Qatar from April 2000 to June 2025.