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28th October 2023 (9 Topics)

How natural gas is central to ties between India and Qatar?

Context

The death sentence to Indian Navy personnel strains India-Qatar ties as India’s Liquefied Natural Gas (LNG) imports forms 50% of the total natural gas imports of India.

About

India’s Gas import dependency:

  • India’s total imports from Qatar in FY2022-23 were valued at 16.81 billion dollars, of which LNG imports alone were worth $8.32 billion, or 5%, an analysis of official trade data shows.
  • India’s other major imports from Qatar are also fossil fuel-linked commodities and products, such as liquefied petroleum gas (LPG), plastics, and other petrochemicals.

Government-owned Petronet LNG, India’s largest LNG importer, has a long-term contract with Qatar for the import of 8.5 million tonnes per annum (mtpa) of LNG.

  • Whereas, India’s exports to Qatar were valued at just 1.97 billion dollars in FY2022-23. The major exports include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, and processed food products.

Qatar’s Significance for India:

  • The Indian Diaspora: There are over 800,000 Indian nationals residing in Qatar.
    • They comprise the largest expatriate community in Qatar and are engaged in a wide spectrum of professions including medicine; engineering; education, finance; banking; business; and media apart from a large number of blue-collared workers.
  • Imports and Exports: Qatar’s key exports to India include LNG, LPG, chemicals and petrochemicals, plastics, and aluminium articles.
    • While India’s key exports to Qatar include cereals, copper articles, iron and steel articles, vegetables, fruits, spices, and processed food products, electrical and other machinery, plastic products, construction material, textiles & garments, chemicals, precious stones and rubber.
    • India is among the top three largest export destinations for Qatar (China and Japan being the other two) and is also among the top three sources of Qatar’s imports, along with China and US.
  • Defense ties:
    • India offers training slots in its defence institutions to a number of partner countries, including Qatar.
    • India regularly participates in the biennial Doha International Maritime Defence Exhibition and Conference (DIMDEX) in Qatar.
    • Indian Naval and Coast Guard ships regularly visit Qatar as part of our bilateral cooperation and interaction.

India-Qatar Defence Cooperation Agreement, signed during the PM’s visit to Qatar in November 2008, and further extended for a period of five years in November 2018.

  • Geostrategic significance:
    • GCC Membership: Qatar’s membership in the Gulf Cooperation Council (GCC) is strategically significant for India, especially concerning issues like Kashmir.
    • UNSC Support: India’s bid for a permanent seat at the United Nations Security Council requires support from countries like Qatar.

Concerns for India-Qatar Relations:

  • Religious Controversy: In June 2022, a controversy involving derogatory remarks about the Prophet on a TV show led to tension between India and Qatar.
    • Qatar demanded a public apology, which India addressed by swiftly sacking the individual responsible.
  • Recent shift-overs: The imprisonment of the eight ex-Navy personnel constitutes the second significant challenge.
    • It took India by surprise in a country where a large Indian expatriate community resides, making India-Qatar relations a sensitive issue.

Conclusion

The detention and sentencing of eight Indian nationals in Qatar have posed a complex diplomatic challenge for India. Against the backdrop of India-Qatar relations, this incident underscores the importance of navigating cultural sensitivities and geopolitical dynamics to secure the release of these individuals.

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