India is set to finalize the terms for a potential free trade agreement with Qatar by early October, according to a government source. This move is part of India’s strategy to strengthen global partnerships and mitigate the effects of US tariffs.
Trade Minister Piyush Goyal may travel to Doha on October 6 to wrap up the negotiation framework, as mentioned by the government source, who requested anonymity since trade discussions are not yet public.
In February, during the visit of Qatar’s Emir Sheikh Tamim bin Hamad Al Thani to India, both countries agreed to enhance their partnership and aim to double bilateral trade to $28 billion within five years.
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Qatar has also unveiled plans to invest $10 billion in India across sectors like infrastructure, technology, manufacturing, food security, logistics, and hospitality.
India and Qatar enjoy robust energy ties and have extended a long-term agreement for liquefied natural gas supply to India, effective for 20 years starting in 2028.
Following US President Donald Trump’s additional 25% tariffs on Indian goods due to Russia oil purchases, raising total duties to 50%, New Delhi is intensifying efforts to strengthen trade relationships with other nations.
India is also exploring a free trade agreement with the European Union, its largest trading partner in goods, later this year.
Exporter groups suggest that the US tariffs could impact nearly 55% of India’s $87 billion in merchandise exports to the US, potentially benefiting competitors like Vietnam, Bangladesh, and China.
Additionally, India aims to finalize bilateral trade agreements with Oman, Chile, and Peru to boost exports and diversify markets while safeguarding farmers and small businesses, the source added.
