India negotiating FTA with GCC and Qatar: MEA

New Delhi [India], February 18 (ANI): India is in the process of negotiating a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC) and is also considering an FTA with Qatar.
This move aims to strengthen bilateral relations and deepen cooperation in various fields such as trade, energy, investment, security, and regional and international affairs.
During a special briefing on the state visit of the Amir of Qatar to India on Tuesday, Ministry of External Affairs (MEA) Secretary, CPV & OIA, Arun Kumar Chatterjee said that India and GCC "at this moment negotiating about having a free trade agreement," and in addition, India is also exploring the possibility of signing a similar agreement with Qatar in the future.
"India and Gulf Cooperation Council (GCC), we are at this moment negotiating about having a free trade agreement. As far as Qatar is concerned, both sides are exploring the possibility of signing a free-trade agreement in future and that was one of the discussions that took place in this round of talks," said Chatterjee.
India has enjoyed centuries of good relations with countries like Iran, while smaller gas-rich nation Qatar is one of India's closest allies in the region. India shares good relations with most of the countries in the Gulf.
The two most important reasons for the relationship are oil and gas, and trade. Qatar accounts for 41% of India's total natural gas imports. Two additional reasons are the huge number of Indians who work in the Gulf countries, and the remittance they send back home.
As per a research paper published by the Reserve Bank of India, in the financial year 2020-21, remittances from the UAE to India were USD 15.40 billion, which is 18% of India's total inward remittances.
Overall, these agreements have the potential to significantly boost India's economic and strategic ties with the GCC and Qatar and could have far-reaching implications for the country's trade, energy, and security policies.
"As far as strategic partnership agreement is concerned, it actually elevates the present state of bilateral relations to a strategic level. What we are looking at is deepening the cooperation in the fields of trade, energy, investment, security as well as in the regional and international flora...," added Chatterjee.
According to MEA, Prime Minister Narendra Modi and the Amir of Qatar held discussions on wide-ranging topics including FTA, technology, energy and people-to-people ties.
GCC is a union of six countries in the Gulf region -- Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. The council is the largest trading bloc of India. A free trade agreement between India and the GCC has been in the works since 2004 when a Framework Agreement on Economic Cooperation was signed.
Although negotiations stalled, they have resumed, with India seeking to increase trade with the GCC, which is currently its largest trading partner bloc, with bilateral trade valued at over USD 154 billion in FY 2021-22.
Earlier today, India and Qatar signed an agreement to formally elevate their relations to a strategic partnership and exchanged multiple memorandums of understanding (MoU) with a focus on trade, energy, investments, innovation, technology, food security, culture & people-to-people ties.
The MEA Secretary, CPV & OIA, also stated that Qatar was a key "energy supplier" for India and that both leaders noted the agreement made back in February 2024, where Qatar Energy and Petronet LNG Limited stated that it would send 7.5 million metric tonnes per annum of Liquefied Natural Gas (LNG) from Qatar to India, starting in 2028, for 20 years.
"India and Qatar share a very vibrant partnership in the area of energy. Qatar is a major source of energy for India. Both leaders today noted that in February 2024, Qatar Energy and Petronet LNG Limited signed an agreement for the supply of 7.5 million metric tonnes per annum of LNG from Qatar to India for 20 years starting 2028," Chatterjee said.
"Both leaders also discussed ways to further strengthen and broaden the energy partnership, including exploring mutual investments. India and Qatar today enjoy deep-rooted, friendly relations anchored in historic trade and people-to-people ties...The prime minister thanked the Amir of Qatar for his support for the large Indian community in Qatar, particularly during the COVID-19 pandemic period...Two agreements and five MoUs were signed during the state visit of the Amir of Qatar," he added.
Earlier today, the Amir of Qatar, who arrived in India on a two-day visit on Monday, received the Guard of Honour and a ceremonial welcome in the forecourt of the Rashtrapati Bhavan.
Meanwhile, the Agreement on the Establishment of a Strategic Partnership between the two countries was exchanged in the presence of Prime Minister Narendra Modi and Sheikh Tamim Bin Hamad Al Thani, Amir of the State of Qatar, at the Hyderabad House here in the national capital. (ANI)