India and Qatar will soon launch negotiations on a free trade agreement (FTA), with the goal of reaching a deal by the middle or third quarter of next year, commerce and industry minister Piyush Goyal said in Doha on Monday.
“Very soon we should be in a position to launch negotiations and hopefully conclude them in a very short time frame. I would think that sometime by the middle of next year or third quarter of next year we will be able to finalise an FTA if not earlier,” the minister told reporters here.
Why is Goyal in Doha?
Goyal is in Doha for a meeting of the India-Qatar Ministerial Joint Commission on Economic and Commercial Cooperation, which he co-chaired with Qatar’s minister of commerce and industry, Sheikh Mohammed bin Hamad bin Qassim Al Thani.
He said the terms of reference (ToR) for the pact—officially called a Comprehensive Economic Partnership Agreement (CEPA)—will be finalised soon. The ToR outlines the scope, objectives and framework for negotiations, following a joint feasibility study that assessed the viability of the FTA.
New Delhi and Doha aim to double bilateral trade to $30 billion by 2030, up from the current $14.15 billion. India exported goods worth $1.68 billion to Qatar in FY24, while imports stood at $14.14 billion, with petroleum and natural gas accounting for nearly 90% of total inbound shipments.
Goyal highlights opportunities in agriculture and food products
To enhance trade beyond energy, Goyal highlighted opportunities in agriculture and food products. He also pointed to emerging areas of collaboration including renewable energy, data centres, artificial intelligence, tourism, pharmaceuticals and cosmetics.
During the visit of Emir of Qatar Sheikh Tamim bin Hamad Al Thani to India in February this year, Qatar announced an investment of $10 billion through Qatar Investment Authority (QIA). “They have already invested between $4-5 billion in India. Another $1-1.5 billion is already in the pipeline where they are looking at opportunities and are almost at finalisation stage. They are looking for good opportunities, sincere and good promoters in India, and projects in India,” Goyal added.
Potential sectors for Qatari investment include infrastructure, manufacturing, financial services such as banking and insurance, AI, data centres and real estate, Goyal said, noting these could push total investments well beyond the pledged $10 billion. He added that India is strengthening trade ties globally and that ongoing negotiations should not be viewed through the narrow lens of tariff tensions with the US.
“Today, the FTA negotiations are going on with Oman, with the European Union, USA, Chile, Peru, with New Zealand, Eurasia, and with many other countries who have expressed their willingness to talk. India is now uniting itself with developed countries and this kind of thinking is very important for India to enter the ranks of developed countries,” Goyal added.
On Monday, India and the EU began the 14th round of FTA negotiations. Separately, the 11th round of discussions to review the goods trade agreement with the 10-member Asean bloc also kicked off in Jakarta.