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India is likely to finalise the framework for a Qatar trade agreement in October, as Trump tariffs bite

A government source stated on Monday that India will likely finalise terms of reference of a proposed free-trade agreement with Qatar by early October. This is in response to its efforts to create deeper global partnerships, and to offset the impact from U.S. Tariffs.

The government source who requested anonymity because the details of the trade negotiations are not yet public told reporters that Trade Minister Piyush Goyal may visit Doha to finalize the framework for the negotiations on October 6.

Both sides agreed that they would double their bilateral trade in five years to $28 billion during the visit of Qatar's Sheikh Tamim Bin Hamad Al-Thani to India.

Qatar also announced plans for an investment of $10 billion in India, in the areas of infrastructure, technology and manufacturing, food safety, logistics, hospitality, logistics and other sectors.

India and Qatar have a close energy partnership and last year, a long-term agreement was renewed for the supply to India of liquefied gas for 20 years beginning in 2028.

New Delhi has intensified its efforts to strengthen trade relations with other countries after U.S. president Donald Trump doubled the total tariffs to 50% by imposing additional 25% duties on Indian goods last month for purchasing Russian oil.

In addition, India is seeking to sign a free-trade agreement with the European Union (EU), India's largest trading partner for goods, by the end of this year.

The U.S. Tariffs are estimated to affect 55% of India’s $87 billion worth of merchandise exports, benefiting other competitors like Vietnam, Bangladesh, and China.

Source: India is also looking to sign bilateral trade agreements with Oman and Chile, as part of its efforts to diversify and boost markets while protecting small businesses and farmers.

(source: Reuters)