India is expected to finalise the terms of reference for a proposed free trade pact with Qatar in early October, a government source said on Monday, as it seeks to strengthen global partnerships and counter the effects of U.S. tariffs.
Commerce and Industry Minister Piyush Goyal could visit Doha on October 6 to conclude the framework for negotiations, the government source, who asked not to be named as the details of trade discussions are still not public, told reporters.
Bilateral Trade Goals
During a February visit to India by Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani, both sides agreed to elevate their partnership and double bilateral trade to $28 billion within five years.
Qatar has also announced plans to invest $10 billion in India in infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.
India and Qatar already have close energy cooperation, and last year renewed a long-term deal for the supply of liquefied natural gas to India for 20 years starting in 2028.
Trump’s Tariff Salvo
After U.S. President Donald Trump imposed additional 25% tariffs on Indian goods for buying Russian oil last month, doubling total duties to 50%, New Delhi is accelerating efforts to deepen trade ties with other partners.
It is also seeking a free trade pact with the European Union, India’s biggest trading partner in goods, later this year.
Exporter groups estimate the U.S. tariffs could affect nearly 55% of India’s $87 billion in merchandise exports to the United States, while benefiting competitors such as Vietnam, Bangladesh and China.
More Trade Pacts
India is pursuing bilateral trade agreements with Oman, Chile, and Peru as part of a broader strategy to expand exports and diversify global markets, the source added.
The government emphasises that these pacts will balance growth opportunities with safeguards for farmers and small businesses, ensuring that domestic industries remain protected while boosting international competitiveness.
(With inputs from Reuters)
