8 Sep 2025 : India and Qatar are on track to finalise the terms of reference (ToR) for their much-anticipated Free Trade Agreement (FTA) by early October, marking a significant step forward in strengthening bilateral trade ties. Officials from both nations have been engaged in several rounds of discussions, and sources close to the negotiations have indicated that most of the contentious issues have been resolved, paving the way for formalising the framework.
The FTA aims to boost trade volumes, facilitate smoother market access, and encourage investments in key sectors including energy, petrochemicals, IT, and infrastructure development. India, one of Qatar’s largest trading partners, imports a substantial amount of LNG (liquefied natural gas) from the Gulf nation, and the FTA could lead to a more predictable pricing mechanism, benefiting Indian energy security.
Experts believe that the agreement could significantly enhance India’s export potential in sectors such as engineering goods, textiles, pharmaceuticals, and IT services. With bilateral trade crossing $18 billion last year, the agreement could push the figure much higher and diversify the trade basket beyond hydrocarbons.
Apart from trade in goods and services, the FTA discussions also focus on investment protection frameworks and mechanisms for dispute resolution, which are crucial for boosting investor confidence. The agreement is expected to open opportunities for Indian companies to participate in Qatar’s ambitious infrastructure projects, particularly as the country continues to invest in its post-World Cup economic diversification plans.
For Qatar, India remains a key growth market with a rapidly expanding middle class and rising energy demand. Strengthening ties through an FTA would allow Qatar to deepen its economic footprint in one of the world’s fastest-growing economies.
Officials say that once the terms of reference are finalised in early October, formal negotiations on the agreement’s text will begin, with a target to conclude discussions within 2026. The government is optimistic that the FTA will also complement India’s ongoing trade pacts with other Gulf Cooperation Council (GCC) countries, eventually leading to a broader India-GCC trade agreement.
The move is being seen as a strategic economic partnership that goes beyond trade, with potential cooperation in technology, clean energy, and education sectors. Both countries are expected to make a formal announcement after the final round of ToR talks in Doha.
Summary:
India and Qatar are set to finalise Free Trade Agreement terms of reference by early October, a move expected to boost trade, energy cooperation, and investment opportunities between the two nations.