Why in news?
- The visit of Prime Minister Narendra Modi to Qatar in June 2016, revived the momentum between the bilateral relations.
- The investment requirements of a large emerging economy like India and the vast financial surpluses of an energy rich economy such as Qatar can be married to create a win-win situation for both of our countries.
What is the background of the issue?
- The intent was positive, the policy paralysis in the later years of the previous government adversely impacted the investment outlook for the country.
- Qatar’s desire to invest in India from its Sovereign Wealth Fund was one of the many casualties.
- The current volume of Qatari FDI in India is modest, Qatar’s Sovereign Wealth Fund and other state-owned entities, as well as Qatari private investors, are looking at investment options in infrastructure in India.
- Including in real estate, roads and highways, airports and airlines, ports, LNG, petrochemicals and fertilizers, and tourism/hospitality.
What is the potential of the Qatar investment?
- There is vast potential for Qatar Investment Authority to substantially increase its investments in India.
- India’s huge needs $ 1 trillion in the next 5 years in infra alone investment friendly policies, and QIA’s keenness to diversify its global portfolio.
- India has made efforts to actively engage with QIA and other state-owned and private entities in Qatar, highlighting policies such as ‘Make in India’ and the advantages of investing in India.
- The balance of trade is currently heavily in Qatar’s favour.
- India’s corporate sector too is increasingly pursuing business opportunities in Qatar.
- A number of reputed Indian companies, particularly in construction/infrastructure and IT, have operations in Qatar, including L&T, Voltas, TCS, Wipro, Mahindra Tech, HCL, SBI and ICICI.
What is the way forward?
- While business has been the focus of the relationship, India’s ties with Qatar have largely been founded on energy and economic links, and the presence of the Indian community.
- The interest of citizens living and working in Qatar, many of them engaged in projects related to the FIFA World Cup in 2022, is paramount for India.
- Qatar backs political Islam, but this is an Islam that is at once moderate, accommodative, liberal and forward-looking.
- The crisis in the Middle East would not impact India adversely, and India’s “Gulf policy is on very solid ground”.
- however, said balancing the relationships in the region would require “diplomatic finesse” of a high order.
- There might be some implications on investments, and the movement of labour could become difficult.
Source: Indian Express
