India and Qatar are on the verge of finalizing a free trade agreement (FTA) this week, an ambitious move expected to significantly boost economic ties between the two nations. The agreement aims to double bilateral trade to $28 billion over the next five years.
The discussions will take place during Commerce and Industry Minister Piyush Goyal's two-day visit to Doha, commencing on October 6, 2025. Goyal will co-chair the Qatar-India Joint Commission on Trade and Commerce meeting with Qatar's Minister of Commerce and Industry, Sheikh Faisal bin Thani bin Faisal Al Thani. The visit underscores India's commitment to strengthening trade and investment relations with Qatar, a key partner in the Gulf Cooperation Council (GCC).
The primary focus of the talks will be to finalize the Terms of Reference (ToR) for a Comprehensive Economic Partnership Agreement (CEPA), which will pave the way for further collaboration. The ToR typically outlines the modalities for negotiating a trade pact. Beyond trade, discussions will encompass cooperation in key sectors such as finance, agriculture, environment, tourism, culture, and healthcare.
India sees Qatar as a vital trading partner within the GCC. In the fiscal year 2024-25, bilateral trade between the two countries stood at $14.15 billion. However, trade is heavily skewed towards energy imports, with petroleum and gas products constituting approximately 89% of India's total imports from Qatar. During 2024-25, India's exports to Qatar totaled $1.68 billion, while imports reached $12.46 billion, resulting in a trade deficit of $10.78 billion.
To address this imbalance, both countries recognize the need to broaden cooperation into new sectors, including chemicals, fertilizers, metals, and engineering goods. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), suggests that joint ventures in energy infrastructure, technology collaboration, and cross-border investments could help reduce India's trade deficit and reinforce Qatar's role as a trusted long-term partner.
In February 2025, both sides agreed to explore strategies for enhanced and diversified trade and address market access issues related to goods and services. They also agreed to explore settling bilateral trade in their respective currencies. Furthermore, Qatar announced its commitment to invest $10 billion in India, with the Qatar Investment Authority (QIA) planning to open an office in India.
The FTA with Qatar is part of India's broader strategy to forge trade agreements with key partners. India already has a trade pact with the UAE, and a similar deal is expected to be signed with Oman soon.
