New Delhi, Oct 5 (PTI) – India's significant trade deficit with Qatar can be narrowed through strategic joint ventures, technology collaboration, and increased cross-border investments, according to a recent analysis by think tank GTRI. The core issue lies in the energy sector, where imports significantly outweigh exports.

In the fiscal year 2024-25, trade between India and Qatar totaled $14.15 billion. However, the trade relationship is heavily skewed towards energy imports, with crude oil and gas products constituting approximately 90% of India's total imports from Qatar. Specifically, India's exports to Qatar amounted to $1.68 billion, while imports soared to $12.46 billion, resulting in a trade deficit of $10.78 billion, widening from $10.78 billion in the previous fiscal year.

GTRI Founder, Ajay Srivastava, highlighted the energy-centric nature of the trade between the two nations. He emphasized that energy products remain the foundation of bilateral trade, showcasing India's substantial reliance on Qatar for LNG and hydrocarbon supplies.

To address this imbalance and foster a more robust economic partnership, GTRI suggests several key strategies:

• Joint Ventures in Energy Infrastructure: Establishing joint ventures focused on energy infrastructure development can help in building stronger, long-term partnerships.
• Technology Collaboration: Encouraging technology transfer and collaboration can enhance efficiency and innovation in the energy sector and beyond.
• Cross-Border Investments: Facilitating increased investments in each other's economies can create diversified trade opportunities and reduce reliance on specific sectors.

These measures can potentially transform Qatar's role into a reliable, long-term partner, moving beyond the current energy-dominated trade dynamic.

India is actively pursuing a diversified trade strategy and aims to strengthen its economic ties with Qatar through a bilateral agreement. However, GTRI has previously cautioned that a comprehensive economic partnership agreement (CEPA) with Qatar must be approached carefully, particularly concerning the petrochemical sector. Both nations possess strong petrochemical industries, and tariff reductions could lead to an influx of cheaper Qatari imports, potentially undermining domestic industries in India.

In February 2025, GTRI advised that any trade agreement should carefully evaluate sectoral impacts, especially in energy and manufacturing, to ensure a balanced outcome. India's well-developed domestic petrochemical industry could face challenges if tariff reductions lead to an influx of cheaper Qatari imports.

In 2023-24, India's imports from Qatar stood at USD 12.34 billion, while its exports were only USD 1.7 billion. A significant portion (85 per cent) of India's imports from Qatar comprises LNG (USD 6.3 billion), butane, propane mostly for LPG production (USD 3.1 billion), and petroleum crude (USD 1.1 billion). India's primary exports to Qatar include Basmati rice (USD 124 million), articles of iron and steel (USD 200 million), and machinery (USD 106 million).

A joint statement after a meeting between Prime Minister Narendra Modi and Amir of Qatar Sheikh Tamim bin Hamad Al-Thani revealed that both countries would explore the possibility of a CEPA, aiming to double bilateral trade to USD 28 billion by 2030.