EVEN as analysts were preoccupied with the implications of US President Donald Trump’s policies for India, an important visit passed under the radar. The Amir of Qatar, Tamim bin Hamad Al Thani, visited India last week and was given the signal honour of being received at the airport itself by Prime Minister Narendra Modi.

The courtesy has been reserved for the leaders of only a few countries, including leading economies like Japan and France. Qatar, in contrast, is a tiny West Asian kingdom. But it wields far more heft than is evident by its mere size. It is the fifth richest country in terms of per capita GDP and is home to the world’s largest natural gas field. It also plays a disproportionately large role in the geopolitical events of the region, including recent negotiations to reach a peace deal in the Israel-Hamas war.

Qatar is critically important to India for many reasons, but primarily as a major supplier of liquid natural gas (LNG). As much as 45 per cent of the country’s requirements are met by imports from this Gulf country. LNG is natural gas cooled to a liquid state. In this chilled form, it can be transported by special tankers to terminals around the world. It is then warmed again and moved through pipelines to distribution points. The advantage is that it can be transported to places beyond the reach of pipelines. There have been many proposals for subsea pipelines to bring natural gas from Gulf countries like Oman to the subcontinent, but these have failed to take off due to technical reasons. LNG imports are, therefore, a viable option.

Natural gas is also a cleaner alternative to other fossil fuels. It currently comprises only 6 per cent of the country’s energy mix, but the target is to raise this to 15 per cent by 2030. The International Energy Agency has forecast that India’s natural gas consumption will rise by nearly 60 per cent over this period from 2023 levels. This, in turn, will lead to a doubling of LNG imports owing to sustained demand growth and a slowing domestic production. Currently, imported natural gas accounts for roughly half of the country’s consumption needs.

Qatar and the US look set to be major suppliers of natural gas in the form of LNG in the long run. An existing India-Qatar contract for the supply of 7.5 million tonnes per annum of LNG has recently been extended for another 20 years with effect from 2028. The value of the contract is a mind-boggling $78 billion.

This long-term commitment provides a tremendous comfort level in the energy sector at a time when the US is doubling down on sanctions against Russia. Right now, India needs to ensure that oil and gas supplies are not disrupted for any reason. Diversification of sources of supply has already been carried out in the case of oil, with imports contracted from multiple sources. As far as natural gas is concerned, the recent agreements with Qatar give similar confidence that much of the demand will be met without any hiccups.

PM Modi’s warmth towards the Qatari leader also stems from an expectation of substantial investments to be made in the coming years. A $10-billion investment plan was announced during the visit, but this could expand significantly, especially in the energy sector. Foreign direct investments of $1.5 billion have already been made by the Qatar Investment Authority in a wide range of areas, including retail, power and information technology. As for bilateral trade, it is expected to rise from $14 billion currently to $28 billion over the next five years.

Yet, investments from Qatar are lagging behind those from other Gulf countries like Saudi Arabia and the United Arab Emirates (UAE). These countries have announced investment plans of $100 billion and $75 billion, respectively, largely in the hydrocarbons sector. Clearly, more efforts are needed to enhance ties with the equally cash-rich yet smaller neighbour.

Apart from economic cooperation, the Qatar leader’s visit has led to bilateral relations being upgraded to a strategic partnership. It becomes the fifth Gulf country with which India has developed this relationship. The upgradation of ties is significant, especially in the context of the key role that this small nation plays in West Asia. It has become a broker for peace talks in most conflicts in the region, the most recent being the Gaza truce that was negotiated in Qatar.

For India, it has also emerged as a channel of communication with the Taliban in Afghanistan. The relationship had floundered in 2022 when eight former Indian Navy personnel were sentenced to death by a Qatari court. PM Modi’s intervention led to the sentence being commuted, but one former naval officer still remains in custody. It is also interesting that the ambitious India-Middle East-Europe Corridor (IMEC) project has bypassed Qatar, though both the UAE and Saudi Arabia are on board.

Hopefully, these lingering irritants in bilateral ties will be ironed out soon. At a time when media scrutiny of the India-US relationship is overwhelming due to a raft of announcements by Trump on various issues, the growing importance of India-Qatar ties has been given only muted recognition. But there is no doubt that this relationship, built on the foundational element of energy security, is set to become deeper. One aspect that will play a significant role in determining the course of these ties is the eight lakh-strong Indian diaspora that makes a major contribution to the economy of the Gulf country. It is incumbent on the government to ensure adequate working conditions for its citizens there, even as domestic foreign exchange reserves benefit from the bonanza of remittances that prop up foreign exchange reserves. A multiplicity of factors, therefore, are underpinning this much-needed initiative to expand relations with a country that has rapidly assumed a key role in West Asia.